lo640 foreign trade customs 46c

LO640 Foreign Trade / Customs LO640

Release 46C 30.04.2002

LO640 Foreign Trade / Customs ........................................................................................................................................... 0-1

Copyright............................................................................................................................................................................... 0-2

Materials Management ................................................................................................................................................... 0-3 Sales and Distribution..................................................................................................................................................... 0-4 Course Prerequisites........................................................................................................................................................ 0-5

Target Group .................................................................................................................................................................... 0-6 Introduction........................................................................................................................................................................... 1-1

Course Goals .................................................................................................................................................................... 1-2

Introduction: Unit Objectives ........................................................................................................................................ 1-3 Introduction: Course Overview Diagram .................................................................................................................... 1-4 Table of Contents ............................................................................................................................................................ 1-5

Foreign Trade - Influencing Factors............................................................................................................................. 1-6 Foreign Trade - Laws / Regulations............................................................................................................................. 1-7 Foreign Trade - Industry Sectors .................................................................................................................................. 1-8

Economic Zones .............................................................................................................................................................. 1-9 Foreign Trade as a Service Function.......................................................................................................................... 1-10 Introduction: Summary ................................................................................................................................................. 1-11

Basic Data.............................................................................................................................................................................. 2-1 Basic Data: Unit Objectives........................................................................................................................................... 2-2 Basic Data: Overview Diagram .................................................................................................................................... 2-3

Basic Data - Overview.................................................................................................................................................... 2-4 Foreign Trade Cockpit .................................................................................................................................................... 2-5 Foreign Trade Cockpit: Basic Data .............................................................................................................................. 2-6

Vendor Master.................................................................................................................................................................. 2-7 Material Master................................................................................................................................................................ 2-8 Purchasing Info Record .................................................................................................................................................. 2-9 Geographical Information............................................................................................................................................ 2-10

Customer Master............................................................................................................................................................ 2-11 Customizing: Check Objects and Default Values.................................................................................................... 2-12 Commodity Code/Code Number ................................................................................................................................ 2-13

Mode of Transport......................................................................................................................................................... 2-14 Customs Office .............................................................................................................................................................. 2-15 Procedure ........................................................................................................................................................................ 2-16

Business Transaction Type .......................................................................................................................................... 2-17 Statistical Value ............................................................................................................................................................. 2-18 Basic Data: Summary ................................................................................................................................................... 2-19

Basic Data - Exercises .................................................................................................................................................. 2-20 Basic Data - Solutions .................................................................................................................................................. 2-32

Documents in Foreign Trade.............................................................................................................................................. 3-1

Documents in Foreign Trade: Unit Objectives........................................................................................................... 3-2 Documents in Foreign Trade: Overview Diagram..................................................................................................... 3-3 Foreign Trade Data in the Supply Chain ..................................................................................................................... 3-4

Cockpit: General Foreign Trade Data.......................................................................................................................... 3-5 Foreign Trade / Import ................................................................................................................................................... 3-6 Foreign Trade / Import - Process .................................................................................................................................. 3-7

Foreign Trade / Import - Header................................................................................................................................... 3-8 Foreign Trade / Import - Item........................................................................................................................................ 3-9 Determination of Foreign Trade Data (Goods Receipt).......................................................................................... 3-10

Foreign Trade / Export ................................................................................................................................................. 3-11

Foreign Trade / Export - Process ................................................................................................................................ 3-12 Foreign Trade / Export - Header................................................................................................................................. 3-13 Foreign Trade / Export - Item...................................................................................................................................... 3-14

Determining Foreign Trade Data for Billing Documents....................................................................................... 3-15 Incompleteness - Overview......................................................................................................................................... 3-16 Foreign Trade Documents: Summary ........................................................................................................................ 3-17

Documents in Foreign Trade - Exercises.......................................... 3-18

Documents in Foreign Trade - Solutions........................................... 3-25

Import Basis Module ........................................................................................................................................................... 4-1 Import Basis Module: Unit Objectives ........................................................................................................................ 4-2

Import Basis Module: Overview Diagram.................................................................................................................. 4-3 Import Basis Module - Key Objectives ....................................................................................................................... 4-4 Basic Data......................................................................................................................................................................... 4-5

Customizing - Commodity Code/Code No................................................................................................................. 4-6 Customizing: Import Code Numbers ........................................................................................................................... 4-7 Customizing: Export Commodity Code ...................................................................................................................... 4-8

Code Number Information............................................................................................................................................. 4-9 Authorities / Approval Numbers................................................................................................................................. 4-10 Customs Duty Rates - Definition (1) ......................................................................................................................... 4-11

Customs Duty Rates - Definition (2) ......................................................................................................................... 4-12 Standard Scenario .......................................................................................................................................................... 4-13 Import Simulation - Parameters .................................................................................................................................. 4-14

Import Basis Module: Summary ................................................................................................................................. 4-15

Import Basis Module - Exercises..................................................................... 4-16

Import Basis Module - Solutions...................................................................... 4-20

Data Service .......................................................................................................................................................................... 5-1 Data Service: Unit Objectives ....................................................................................................................................... 5-2

Data Service: Overview Diagram................................................................................................................................. 5-3 Foreign Trade Cockpit: Data Service........................................................................................................................... 5-4 Basic Foreign-Trade Data .............................................................................................................................................. 5-5

Basic Customs Data ........................................................................................................................................................ 5-6 Customs Duty Rates........................................................................................................................................................ 5-7 Process Overview............................................................................................................................................................ 5-8

IDocs.................................................................................................................................................................................. 5-9 Inbound Processing - Foreground............................................................................................................................... 5-10 Inbound Processing - Background.............................................................................................................................. 5-11

Distribute Customs Data .............................................................................................................................................. 5-12 Data Service in Foreign Trade: Summary ................................................................................................................. 5-13

Communication / Printing................................................................................................................................................... 6-1

Communication / Printing: Unit Objectives................................................................................................................ 6-2 Communication / Printing: Overview Diagram......................................................................................................... 6-3 Communication - Future Procedure ............................................................................................................................. 6-4

Basic Data......................................................................................................................................................................... 6-5 Output Control / EDI ...................................................................................................................................................... 6-6 Import IDoc ...................................................................................................................................................................... 6-7

Export IDoc ...................................................................................................................................................................... 6-8 AES: Automated Export System - USA ...................................................................................................................... 6-9

A.E.S.: Options - USA.................................................................................................................................................. 6-10 Application Scenario - Outbound ............................................................................................................................... 6-11 Application Scenario - Inbound.................................................................................................................................. 6-12

Printing Options............................................................................................................................................................. 6-13 Printing Process............................................................................................................................................................. 6-14 Changes Before Printing .............................................................................................................................................. 6-15

List of Message Types Delivered for Various Releases ......................................................................................... 6-16 Creating New Documents in the SAP System: Activities ...................................................................................... 6-17 User Enhancement V55ECTRL.................................................................................................................................. 6-18

Communication / Printing: Summary ........................................................................................................................ 6-19

Communication / Printing - Exercises.................................................... 6-20

Communication / Printing - Solutions .................................................... 6-26

Legal Control........................................................................................................................................................................ 7-1

Legal Control: Unit Objectives ..................................................................................................................................... 7-2 Legal Control: Overview Diagram............................................................................................................................... 7-3 Foreign Trade Cockpit: Legal Control......................................................................................................................... 7-4

Check Times..................................................................................................................................................................... 7-5 Process............................................................................................................................................................................... 7-6 Legal Control: Material Master..................................................................................................................................... 7-7

Countries Involved.......................................................................................................................................................... 7-8 License Master................................................................................................................................................................. 7-9 Sections........................................................................................................................................................................... 7-10

Section A: Legal Regulations...................................................................................................................................... 7-11 Section B: Country-specific Data (1) ......................................................................................................................... 7-12 Section B: Country-specific Data (2) ......................................................................................................................... 7-13 Section C: Product-specific Data................................................................................................................................ 7-14

The Check Process in Documents .............................................................................................................................. 7-15 Simulation....................................................................................................................................................................... 7-16 Embargo.......................................................................................................................................................................... 7-17

Sanctioned Party Lists .................................................................................................................................................. 7-18 Customer Master: Sanctioned Party Lists ................................................................................................................. 7-19 Further Uses ................................................................................................................................................................... 7-20

Legal Control: Summary (1)........................................................................................................................................ 7-21 Legal Control: Summary (2)........................................................................................................................................ 7-22

Legal Control - Exercises............................................................................................... 7-23

Legal Control - Solutions................................................................................................ 7-30

Documentary Payments ...................................................................................................................................................... 8-1 Documentary Payments: Unit Objectives ................................................................................................................... 8-2 Documentary Payments: Overview Diagram............................................................................................................. 8-3

Types of Payment Guarantee / Integration.................................................................................................................. 8-4 Letter of Credit - Process ............................................................................................................................................... 8-5 Foreign Trade Cockpit: Documentary Payments....................................................................................................... 8-6

Integration into SD Processes, Control........................................................................................................................ 8-7 Documentary Payments - Master Data ........................................................................................................................ 8-8 Customizing - Basic Settings......................................................................................................................................... 8-9

Financial Document Customizing - Relationships (1) ............................................................................................ 8-10 Financial Document Customizing - Relationships (2) ............................................................................................ 8-11

Financial Document Customizing - Relationships (3) ............................................................................................ 8-12 Customizing - Risk Management for SD .................................................................................................................. 8-13 Customizing - Risk Management for Fin. DocsDetermining the Form of Payment Guarantee...................... 8-14

Comparison of Forms of Payment Guarantee .......................................................................................................... 8-15 Entering a Financial Document: Order...................................................................................................................... 8-16 Updating Document Values......................................................................................................................................... 8-17

Documentary Payments: Simulation.......................................................................................................................... 8-18 Documentary Payments: Summary (1)...................................................................................................................... 8-19 Documentary Payments: Summary (2)...................................................................................................................... 8-20

Documentary Payments - Exercises........................................................................................................................... 8-21

Documentary Payments- Solutions.............................................................. 8-28

Periodic Declarations........................................................................................................................................................... 9-1 Periodic Declarations: Unit Objectives........................................................................................................................ 9-2 Periodic Declarations: Overview Diagram................................................................................................................. 9-3

Periodic Declarations...................................................................................................................................................... 9-4 Foreign Trade Cockpit: Periodic Declarations........................................................................................................... 9-5 Periodic Declarations: Process...................................................................................................................................... 9-6

Individual Maintenance of INTRASTAT/EXTRASTAT and V.A.R.................................................................... 9-7 Controlling the Log of Incomplete Items .................................................................................................................... 9-8 Periodic Declarations: Document Selection ............................................................................................................... 9-9

European Union (EU)................................................................................................................................................... 9-10 EU - INTRASTAT........................................................................................................................................................ 9-11 EU - INTRASTAT: Creating the Declaration.......................................................................................................... 9-12

Oil Declaration (Germany).......................................................................................................................................... 9-13 EU - INTRASTAT: Transmission Media ................................................................................................................. 9-14 EU - INTRASTAT: Checklist..................................................................................................................................... 9-15 EU - EXTRASTAT....................................................................................................................................................... 9-16

EU - EXTRASTAT: Import / Export ......................................................................................................................... 9-17 KOBRA: Check for Exports from Germany ............................................................................................................ 9-18 NAFTA - USA ............................................................................................................................................................... 9-19

NAFTA - USA ............................................................................................................................................................... 9-20 NAFTA - USA ............................................................................................................................................................... 9-21 EFTA - Switzerland (1) ................................................................................................................................................ 9-22

EFTA - Switzerland (2) ................................................................................................................................................ 9-23 Japan - MITI / Customs ................................................................................................................................................ 9-24 Japan - MITI: Export Report ....................................................................................................................................... 9-25

Japan - MITI: Collective Export Report .................................................................................................................... 9-26 Japan: Customs Declaration for Import ..................................................................................................................... 9-27 Periodic Declarations: Summary (1) .......................................................................................................................... 9-28

Periodic Declarations: Summary (2) .......................................................................................................................... 9-29 Periodic Declarations - Exercises ............................................................................................................................... 9-30 Periodic Declarations - Solutions ............................................................................................................................... 9-35

Preference Determination ................................................................................................................................................. 10-1 Preference Determination: Unit Objectives .............................................................................................................. 10-2 Preference Determination: Overview Diagram........................................................................................................ 10-3

What is Preference?....................................................................................................................................................... 10-4 Preference Processing: NAFTA - Preference ........................................................................................................... 10-5 Preferential Measures/Zones ....................................................................................................................................... 10-6

Preference Processing................................................................................................................................................... 10-7 Preference Processing: Process Overview ................................................................................................................ 10-8

Vendor Declaration - Request/Reminder .................................................................................................................. 10-9 Vendor Declaration - Administration....................................................................................................................... 10-10 Vendor Declaration - Data Compression ................................................................................................................ 10-11

Determination: Top-down Explosion....................................................................................................................... 10-12 Determination: Assemblies ........................................................................................................................................ 10-13 Pref. Determination in SD Sales Orders/Billing Docs .......................................................................................... 10-14

Print Movement Certificate ....................................................................................................................................... 10-15 Create Vendor Declarations for Customers ............................................................................................................ 10-16 Preference Determination: Basic Data..................................................................................................................... 10-17

Preference Determination: Summary ....................................................................................................................... 10-18

Preference Determination - Exercises................................................... 10-19

Preference Determination - Solutions...................................................................................................................... 10-24

SAP AG 1999

LO640 Foreign Trade / Customs

LO640LO640

Foreign Trade / Customs

Foreign Trade / Customs

SAP AG

n R/3-System n Release 4.6C n August 2000 n Material Number 50041039

SAP AG 2001

Copyright 2001 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

All rights reserved.

Copyright

Trademarks: n Some software products marketed by SAP AG and its distributors contain proprietary software

components of other software vendors. n Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are registered

trademarks of Microsoft Corporation. n IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®,

AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation. n ORACLE® is a registered trademark of ORACLE Corporation. n INFORMIX®-OnLine for SAP and INFORMIX® Dynamic ServerTM are registered trademarks of

Informix Software Incorporated. n UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group. n HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide

Web Consortium, Massachusetts Institute of Technology. n JAVA® is a registered trademark of Sun Microsystems, Inc. n JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for

technology invented and implemented by Netscape. n SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow, WebFlow,

SAP EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.com are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.

SAP AG 1999

Materials Management

Processes inProcurement

LO020 5 days

Inventory ManagementLO510 3 days

Invoice Verification3 daysLO515

Consumption-BasedPlanning and Forecasting

LO525 2 days

Procurement of External Services

LO540 2 days

Foreign TradeLO640 3 days

QM in ProcurementLO715 2 days

KANBANLO235 2 days

Batch ManagementLO955 3 days

Pricing in Purchasing2 days LO521

Cross-FunctionalCustomizing in MM

5 days LO550

Purchasing Details andOptimization

LO520 3 days

Cross-Application Business Processes in SD and MM

LO925 2 days

Level 2 Level 3

SAP AG 1999

Sales and Distribution

Level 2

Credit and ReceivablesRisk Management

LO645 2 days

Level 3

Cross ApplicationBusiness Processesin SD and MM

LO925 2 days

@LO605b

Cross Selling

@LO605a

Dynamic Product Proposal

Processes in Sales and Distribution

LO150 5 days

Foreign TradeLO640 3 days

LO620 3 daysPricing in SD

LO615 2 daysBilling

LO611 3 days

Transportation

LO610 2 daysDelivery Processes

LO605 5 daysSales

LO650 3 daysCross FunctionalCustomizing in SD

@@1,5 h

@@1,5 h

SAP AG 1999

Course Prerequisites

l MM Overview

l SD Overview

l Specialized knowledge of foreign trade / customs

SAP AG 1999

Target Group

l Audience:

n Project team members, organizers, and employees in departments for foreign trade and customs requirements

l Duration: 3 days

Notes to the user n The training materials are not teach-yourself programs. They complement the course instructor's

explanations. On each page, there is space for you to write down additional information.

(C) SAP AG LO640 1-1

SAP AG 1999

Introduction

l Influencing factors

l Globalization

l Internationalization

l Formation of economic zones

l National and international laws and regulations

l Distributed processes and goods movements

Contents:


SAP AG 1999

Course Goals

This course will prepare you to:

l Efficiently and competently use tools to assist you in performing foreign trade activities

l Identify relevant business cases and explain how they are interconnected in the foreign trade/customs fields


SAP AG 1999

Introduction: Unit Objectives

At the end of this unit, you will be able to:

l Describe how certain trade zones influence boththe political and the economic environment to aconsiderable degree

l Give examples of how purchasing, productionand sales are becoming increasinglyinternational

l Explain how international/multinational laws andregulations increasingly influence national laws


SAP AG 1999

Introduction: Course Overview Diagram

Introduction

Basic Data

Documents in Foreign Trade

Communication / Printing

Legal Control

Documentary Payments

Periodic Declarations

Preference DeterminationData Service

Import Basis Module


SAP AG 1999

Table of Contents

Preface

Unit 1 Introduction

Unit 2 Basic Data

Unit 3 Documents in Foreign Trade

Unit 4 Import Basis Module

Unit 5 Data Service

Unit 6 Communication / Printing

Unit 7 Legal Control

Unit 8 Documentary Payments

Unit 9 Periodic Declarations

Unit 10 Preference Determination


SAP AG 1999

Foreign Trade - Influencing Factors

l Laws / Regulations

l Countries

l Industry sectors


SAP AG 1999

Foreign Trade - Laws / Regulations

l Supranational

n WTO

n WCO

n WHO

n UN

l Country groups

n EU

n NAFTA

n ASEAN (future)

n MERCOSUR (future)

l Countries

n 15 EU members

n Japan

n USA

n Korea

n Mexico


SAP AG 1999

Foreign Trade - Industry Sectors

l Industry-specific functions

n High tech Legal control

n Aerospace and Defense Legal control

n Automotive Preference processing

n Trading houses / Banks Documentary payments

n Chemical industry Legal control

l Industry-independent functions

n Declarations to the authorities

n Export / import processing

n Dual use control

n Communication / Printing

n Data service


SAP AG 1999

Economic Zones

ASEAN

MERCOSUR

NAFTA EU JAPAN

n Tendency towards the formation of economic zones: n EU European Union n EFTA European Free Trade Association n NAFTA North American Free Trade Association n ASEAN Association of South East Asian Nations n MERCOSUR Mercado Comun del Sur

n Other economic zones are emerging.

(C) SAP AG LO640 1-10

SAP AG 1999

Foreign Trade as a Service Function

§

Foreign trade andpayments legislation

Commercial lawCustoms law Taxation law

Documentary paymentsDocumentary payments

Communication printingCommunication printing

BillingBilling

ShippingShipping

SalesSalesProductionProduction

PurchasingPurchasing

Financial accountingFinancial accounting

Legal controlLegal control

Customs processingCustoms processing

Periodic declarationsPeriodic declarations

Preference processingPreference processing

(C) SAP AG LO640 1-11

SAP AG 1999

Introduction: Summary

l Globalization of markets and businessprocesses place greater demands on the business software to reflect this situation.

l International and supranational organizations increase their influence on how companies carry out their business processes.


SAP AG 1999

Basic Data

l Vendor master

l Purchasing info record

l Material master

l Geographical information

l Customer master

l Customizing: Checks and default values

Contents:


SAP AG 1999

Basic Data: Unit Objectives

l Define what master data is necessary for correct, automated foreign trade processing

l List the additional objects you should maintain

l Describe the default values and checks that can be set in Customizing

At the conclusion of this unit, you will be able to:


SAP AG 1999

Basic Data: Overview Diagram

Introduction

Basic Data


Communication/Printing

Legal Control




Import Basis Module


SAP AG 1999

Master data

Customer

Material

Vendor

Purchasing info record

Customizing

Geographical info

Code numbers 4013 45 22 92 3

Customs procedure 43000

Business transaction type 11

...

Basic Data - Overview

Master data required for foreign trade processing: n All data relating to foreign trade is stored in the master data for the entire process chain. This starts

with the vendor master record in purchasing, and includes the purchasing info record, the material master record, geographical information and the customer master record in sales.

n The goods vendor and the customer define where the import and export processes take place. n Vendor and material data is stored in the purchasing info record, which simplifies the purchasing

process. n Customizing allows various checks for validation of master data and movement data. n Default objects from Customizing enable automatic document creation.


SAP AG 1999

General processing in foreign trade

Documentary payments

Communication/Print

Preference processing

Data service

Legal control

Periodic declarations

Display

Change

Completeness

Create

CustomizingMaster data

Import/export documents

Lists,statistics, declarations, journals

Foreign trade: Cockpit

Select

Consistency

Wizards

Foreign Trade Cockpit

n The Foreign Trade Cockpit gives you central access to all foreign trade functions in your SAP System. The cockpit is divided into several sections such as processing, periodic declarations, legal control and data service.

n The cockpit brings together all the necessary tools for each section, so that you can process and monitor operative business transactions. You can also maintain master data directly from the cockpit. You can also access the most important Customizing functions directly from the Cockpit. These Customizing functions are also supported by step-by-step interactive processing guides (Wizards).

n The completeness and consistency of the data in your system is very important for processing business transactions. Therefore, the cockpit contains reports for monitoring data in documents, master records and entries in Customizing.

n The data service cockpit reduces the amount of maintenance for all areas of foreign trade. You can import data from external sources into your SAP System or run comparisons between your data and that of a data provider (see also Data Service).

n Reports with flexible selection options compile journals, lists and statistics for your foreign trade data. You can save your selection parameters as variants so that you can run these reports regularly in the same format. The ABAP List Viewer (ALV) functions are available for further processing of the lists.

n You can even maintain user data to achieve a user-specific setup in the cockpit.


SAP AG 1999

Foreign Trade Cockpit: Basic Data


Communication/Print

Preference processing

Data service

Legal control

Master data

MaterialsCustomerVendorsPurchasing info records

Foreign trade: Cockpit

Customizing

Periodic declarations

General processing in foreign trade

Import code numbersCountries

Business trans. types

Customs procedure

Customs offices

Maintenance

Monitoring

Data import

Merge

...

n The master data and the default values in Customizing contain large amounts of data that is necessary for processing business transactions in foreign trade.

n This data must be entered in the system, which must continually check that it is consistent, complete and up-to-date.

n You can maintain and monitor the master data directly from the cockpit. Functions for importing master data from external sources and merging data are available in the Data service cockpit (for more information, refer to the Data Service unit).

n Customizing supports foreign trade processing with default values for objects such as import code numbers, customs procedures and business transaction types. You can go from the cockpit directly to maintenance transactions for the more important settings in Customizing tables. You can use the General processing - Foreign Trade cockpit to maintain import code numbers, countries and currencies. Use the Data service cockpit to import data for commodity codes, import code numbers and customs duty rates.

n The cockpit has step-by-step interactive process guides (Wizards) available for important Customizing settings. Significant basic settings in Customizing for foreign trade can be made using the wizard in the Periodic declarations cockpit.


SAP AG 1999

Vendor Master

l Vendor's countryl Vendor's regionl Languagel Incotermsl VAT registration numberl Mode of transportl Customs office of entryl Currency

Customs tariff preference

Vendor 1080Purchasing organization 1000Plant 1000

n The data in the vendor master record is used for: � Communicating between vendor and plant or purchasing organization, � Printing transportation documents � Creating declarations to authorities

n The International Commercial Terms (Incoterms ) for regulating cost and risk transfer and the associated rights and obligations of the buyers and vendors can also be stored here.

n In the preference determination unit, you will find details about the data for customs tariff preference in the vendor master record.

n You can use the cockpit to access standard reports to examine the master vendor data and determine whether general foreign trade data has been maintained.


SAP AG 1999

Material Master

Material number DPC-1000Plant 1000

Legal control

l Commodity code/Import code numberl Country of originl Region of originl Export/import groupl Weightl Other data:

n Specific foreign trade data:w CAS numberw PRODCOM number

n Market organization data


n A tariff must be set for all products; in other words, each product must be given a commodity code or an import code number.

n For more information about code numbers , see the Import Basis Module unit. n The origin information can be stored in the material master. n All data relating to export processing can be found in the sales and distribution (SD) documents. The

export/import group is used to determine export procedures. n The Legal Control unit contains legal control information and preference is dealt with in detail in the

Preference Determination unit. n You can access standard reports from the cockpit that allow you to examine the material master data

and determine whether the following data has been maintained: � General foreign-trade data � Data that is relevant for legal control � Preference data � Restitution data


SAP AG 1999

Purchasing Info Record

l Country of originl Region of originl Import procedurel Incoterms


Vendor 1080Material DPC-1000Purchasing organization 1000Plant 1000

n The purchasing info record represents the link between the vendors and the material they deliver. n It overrides the vendor master record. n When you create the first purchase order with a new vendor, the system can automatically generate

the purchasing info record. n The relevant data for the customs tariff preference (preference zone, vendor declaration), vendor

declaration data is automatically completed by the preference determination. You can also supplement this data manually (for more information, see the preference determination unit).

(C) SAP AG LO640 2-10

SAP AG 1999

Geographical Information

Customizing

Routes

l Mode of transportl Customs office

Option 1:Route

HeaderExportdocuments

Default header data in foreign tradel Mode of transportl Means of transportl Country of origin

(means of transport)

l Customs offices

l Container

Option 2:Default

HeaderImportdocuments Header

Exportdocuments

l SAP exit V50EPROPl Document - header

SMOD transactionHeaderImportdocuments Header

Exportdocuments

Option 3:User Exit

ABAP/4 codingABAP/4 coding

n There are three possible options for creating default foreign trade header data in Materials Management (MM) and Sales and Distribution (SD):

n Option 1: For export processing in SD, you can use the route as the main carrier for export-related information.

n Option 2: You can use Customizing (Default foreign-trade header data) to determine the foreign trade header data for the business transaction depending on the goods direction, the country of departure and the country of destination.

n Option 3: You can use the SAP extension V50EPROP to define your own enhancement project (transaction CMOD) and use the function module exits there to define the default data:

Function module exit EXIT_SAPLV50E_001 for export header data Function module exit EXIT_SAPLV50E_002 for import header data

n As it determines data, the SAP System proceeds in the following order: First, data from the route is determined. The foreign trade header data in Customizing is then added. (Note that this data does not replace any data.) Finally, user enhancements that both replace and add to existing data are interpreted.

(C) SAP AG LO640 2-11

SAP AG 1999

Customer 1450Company code 1000Sales organization 1000

l Customer's countryl Customer's regionl Languagel Incotermsl VAT registration numberl Currency

Sanctioned party lists

(legal control)

Payment guarantee

(documentary payments)

Customer Master

n The data in the customer master is used for: � Communicating between the customer and the sales organization � Printing documents relevant for export � Creating various declarations to the authorities

n The Legal Control unit will look at the sanctioned party lists used in legal controls in more detail. n The Documentary Payments unit contains more details about payment guarantees used in

documentary payments. n You can run a standard report from the cockpit in order to examine the customer master data and

determine whether the following data has been maintained: � General foreign-trade data � Data relevant for legal control � Data for documentary payments

(C) SAP AG LO640 2-12

SAP AG 1999

Customizing: Check Objects and Default Values

Material master

Commodity code/Code number

Export/import group

Countries/regions

Mode of transportCustoms offices

Geographical info

Default customs procedure

Default business-trans. type

Strategies for MM documentsStrategies for SD documents

Strategies for MM documentsStrategies for SD documents

Customizing

n All foreign trade data is checked against the settings in Customizing. n The official customs-relevant data is stored in these check objects. n This enables correct processing of export and import processes. n The export/import group determines the export procedure. n If required, you can enter permitted combinations of modes of transport and customs offices into

the system. Then, when a mode of transport/customs office combination is entered, the system checks whether it is permitted. If the combination is not permitted, you can control whether the system issues information, a warning message or an error message.

n As of Release 46C, you can run a consistency check for a combination of procedure and business type.

n In addition, you can classify the customs procedures as import or export procedures. This ensures that an import procedure can only be used in import documents and an export procedure can only be used in export documents.

(C) SAP AG LO640 2-13

SAP AG 1999

Commodity Code/Code Number

Official description

Mail cars (including railway)

Passenger cars, baggage cars

Special cars

DE 8605 0000 000

Special unit of measure 01

Special unit of measure 02

Receipt/import and dispatch/exportAdditional information

Customizing

Country Commodity code Official description

DE

DE

7201 1000 000

8605 0000 000

Wood screws

Passenger cars, baggage cars

......US

Details

Oil indicator

n A systematic, internationally standardized description of goods has been based on the Harmonized Schedule (HS) for numerical classification and identification of goods since 1988. This method is useful for evaluation or summarization purposes. This system took the place of various other systems that were used up to that time. Since it was produced on an international level, it reflected a significant standardization in this area.

n The HS assigns each good a code number, which you can store in the SAP System as the commodity code. As you calculate duties, you can then assign the commodity codes/code numbers to the individual goods in the material master record.

n In addition, you can save commodity code texts in the system. This text is then issued when you create declarations or print export documents.

n For some declarations to authorities such as the intra-European Union trade statistics, certain goods must be declared in certain set units of measurement. Therefore, a special unit of measurement that was stipulated for a certain commodity code is defined for that commodity code.

n You can indicate in the additional information field whether the number is to be used as the commodity code, import code number, or for both.

n As of Release 4.6C, you can use the oil indicator to mark products for which an oil declaration is necessary.

(C) SAP AG LO640 2-14

SAP AG 1999

Mode of Transport

Customizing

Mode of transportCountry Description

SeaRailRoadAirMailFixed means of transportDomestic shippingOwn propulsion

Sea.....

12345789

1.....

FRFRFRFRFRFRFRFR

USA.....

n The mode of transport defines the way in which goods in the country of destination are imported or goods in the country of departure are exported.

n In Purchasing, the mode of transport can be saved in the vendor master. n In Sales and Distribution processing, the mode of transport can be saved in the route. n You can also use Customizing (Default foreign-trade header data) to determine the mode of

transport for the business transaction depending on the goods direction, the country of departure and the country of destination.

n If required, you can enter permitted combinations of modes of transport and customs offices into the system. Then, when a mode of transport/customs office combination is entered, the system checks whether it is permitted. If the combination is not permitted, you can control whether the system issues information, a warning message or an error message.

(C) SAP AG LO640 2-15

SAP AG 1999

Customs Office

Customizing

Customs officeCountry

DEDEDE

Hamburg airportHamburg free portFrankfurt airport

124112996309

Osaka Karsa airportNaritaYokohama harbor customs authority.....

BLKANBLNARBLVOK

.....

JPJPJP

.....

Description

n In the case of exports, the customs office identifies the geographical location, where the goods to be exported must be registered before they leave the jurisdiction of that particular country.

n In the case of imports, the customs office defines the location where the goods to be imported are to be registered before they can circulate freely.

n You can distinguish between the following customs offices: � Customs office of departure (Export customs office) � Office of exit � Office of destination

n For purchasing, the customs office can be stored in the vendor master. n For sales and distribution processing, the customs office can be saved in the route. n You can also use Customizing (Default foreign-trade header data) to determine the customs office

for the business transaction depending on the goods direction, the country of departure and the country of destination.

(C) SAP AG LO640 2-16

SAP AG 1999

Procedure

Customizing

ProcedureCountry

DEDEDEDEDE

FR

Export w/o preceding procedureExport follows importPermanent importTemporary import (subcontracting)Import to bonded warehouse

.....

1000010400430004300171000

.....

Description

n The procedure defines the customs procedure for the transfer of goods and the customs procedure for incoming goods. In the European Union, the first two digits identify the upcoming customs procedure and the second two identify the previous customs procedure.

n The procedure should be maintained in the purchasing info record for purchasing and in an individual default object for sales and distribution processing.

n In addition, you can classify the customs procedures as import or export procedures. This ensures that an import procedure can only be used in import documents and an export procedure can only be used in export documents.

n As of Release 4.6C, you can also run a consistency check for a combination of procedure and business type.

(C) SAP AG LO640 2-17

SAP AG 1999

Business Transaction Type

CustomizingBusinesstrans. typeCountry

BEBEBEBEBEBEBEBEBEBE.....

Final purchase/saleArticle on approval/sampleBarter tradingSale to foreign travelerFinancial leasingGoods returnsReplacement for returned goodsReplacement for non-returned goodsGoods delivery for subcontractingRepair/maintenance free of charge.....

11121314152122234142.....

Description

n The business transaction type describes the business transaction in foreign-trade legal and business terms.

n The business transaction type is to be maintained not only for purchasing but also for sales and distribution processing in a separate default object.

n This specification is required within the European Union (EU) for registering import and export data for INTRASTAT and EXTRASTAT.

n In legal control, the necessary business transaction type is also saved in the definition object. n In legal control, the business transaction type is used as follows: If a document item needs a specific

export license, the item's business transaction type should be the same as the one in the export license.

(C) SAP AG LO640 2-18

SAP AG 1999

Statistical Value

Export / Dispatch

Fictitious goodsvalue at the border

CustomerPlant

Import / Receipt

Fictitious goodsvalue at the border

VendorPlant

Transportation & insurance costs

Transportation & insurance costs

Border

patrol

Border

patrol

n The statistical value determines the value of the goods at the border. n Within the European Union (EU) the statistical value (goods value at the border) is required for

every exported or imported item, especially if you submit monthly notifications to the INTRASTAT, EXTRASTAT or KOBRA, for example. The authorities in your country use this information to create statistics about foreign trade.

n The statistical value can also be used for customs declarations and must be printed in the export documents. Import- and export processing can then take place on the basis of the statistical value. This applies to the following export documents:

Export declaration (EX) Restitution ...

n The system uses the condition records for condition types GRWR and GWLB (subcontracting) to determine statistical values in pricing in the SD billing documents and MM orders. In SD, the condition records are created for each relevant Incoterm clause within a sales area. In MM, they are created for each relevant Incoterm clause within a plant or purchasing organization. You can use all the functions in pricing to supplement the default condition type provided by SAP or adjust it to meet your requirements.

(C) SAP AG LO640 2-19

SAP AG 1999

Basic Data: Summary

l Correct and complete maintenance of the relevant master data is very important, especially in foreign trade, since not every department has the necessary knowledge and information in this specialized area.

l The information necessary for processing export and import business transactions is assigned to different master data records.

l Once data is maintained in the master data, it automatically appears as a default in both purchasing and sales and distribution documents.

l Missing or inapplicable data can be added or changed at any point in document processing.

(C) SAP AG LO640 2-20

Basic Data - Exercises

Unit: Basic Data

• Correct and comprehensive maintenance of relevant master data from the foreign trade perspective

• Maintenance of check objects

You are responsible for import and export processing within your company.

You must ensure that all data within this function is complete and correct.

SAP AG 1999

VendorVendor

CustomerCustomer

PlantPlant

• Vendor master (1)• Material master (2)• Purchasing info rec. (3)• Route (4)• Customer master (5)• Customizing

• Vendor master (1)• Material master (2)• Purchasing info rec. (3)• Route (4)• Customer master (5)• Customizing

11

2233

44

55 22

Exercises - Unit 2 - Basic Data

(C) SAP AG LO640 2-21

Note: The ## symbol stands for the number of your group. When you maintain master data in the R/3 System, you have the option of using a reference or copy function. This allows you to create a new master record by copying the relevant data from the reference or template. Below you will find reference data for a variety of master data. You can use these objects as references in the exercises that follow. You can use the following vendor as a reference for exercise 1: Vendor 1080 (Search term: SCHULUNG) Company code 1000 Purchasing organization 1000 You can use the following material master records as a reference for exercise 2: Trading goods Finished product Number DPC1000 P-402 Industry sector Mechanical engineering Material type Trading goods (HAWA) Finished products (FERT) Plant 1000 1000 Storage location 0001 0001 Sales organization 1000 1000 Distribution channel 10 10

You can use the following info record as an example for exercise 3 (only for comparison purposes; the info record cannot be used as a template): Vendor 1080 (Search term: SCHULUNG) Material DPC1000 Purchasing organization 1000 Plant 1000 Info record number 5300003096 You can use the following customer as a reference for exercise 4: Customer (EU, France) 1450 (Search term: PICARD) Company code 1000 IDES AG, Germany Sales organization 1000 Germany Frankfurt Distribution channel 10 End customer sales Division 00 For all divisions Account group 0001 Sold-to party

(C) SAP AG LO640 2-22

1 Vendor master record Your company has just started dealing with a vendor in France. You need to enter the new vendor into the purchasing system.

Create a vendor master record in R/3. From the General Foreign Trade Processing cockpit, in the Master data section, select the Create Vendor function. Vendor KEU_## Company code 1000 ________________________ Purchasing organization 1000 ________________________ Account group LIEF (##: Your group number) Maintain all the required address fields. Proceed to the Control screen. Enter the VAT registration number (FR12345678908 for France) here. Remember that the number begins with the alphanumeric country code and that there is a checking rule behind this field.

On the Accounting screen, you need to maintain two fields: Reconciliation account: 161000 Cash mgmnt group A2 Foreign payments A/P

On the next screen (Payment transactions – Accounting), maintain: Payment terms ZB01 Within 14 days 3% cash discount, Within 30 days 2% cash discount... Then proceed to the Purchasing data screen to maintain the necessary fields: Order currency FRF ________________________ Payment terms ZB01 ________________________ Incoterms CIP Marseilles Mode of transport-Border ____ Road Office of entry 3816 Weil am Rhein-highway (road) Purchasing group 001 ________________________

(C) SAP AG LO640 2-23

2 Material master You introduce a new product onto the market and want to create a new material master for it. Select the Create Material function in the Master data section of the General Foreign Trade Processing cockpit.

Material HA_## Industry sector Mechanical engineering Material type Trading goods (HAWA) (##: Your group number) Select the following views as you create the new material: – Basic Data 1 – Sales - Sales Org. Data 1 and 2 – Sales – General/Plant data – Purchasing – Foreign Trade: Import Data – Accounting 1 (you may have to page down to select this view) Enter the following organizational data (or copy the reference material using Copy from…): Plant 1000 ________________________ Sales organization 1000 ________________________ Distribution channel 10 ________________________ Maintain the required fields. Make sure that the short text is maintained in German, English and French (Use the Additional data function). View: Basic data 1 Base unit of measure PC piece(s) Material group ____ Hard disks Division ____ High Tech Net weight 0.125 KG Gross weight 0.125 KG View: Sales – Sales org. data 1 Sales unit <BLANK> Delivering plant 1000 Tax classification 1

(C) SAP AG LO640 2-24

View: Sales: general/plant data Transportation group On pallets Loading group Manual Profit center <BLANK> View: Purchasing Purchasing group 001

View: Foreign trade import Comm./imp. code no. 84717053000 ________________________ Export/import group 0009 ________________________ Country of origin ____ Germany Region of origin ____ Nrth Rhine Westfalia View: Accounting 1 Valuation class ____ Trading goods Price control V Price unit 1 Mov. avg. price 61.00 Post goods receipt for this material: Select the create goods receipt function in the Documents section of the General Foreign Trade Processing cockpit. Select Goods receipt and Others from the input help fields at the top of the screen.(46B: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → Other, and enter the movement type, plant and storage location first.)

On the Material, Qty and Wk tabs, maintain the following data: Material MHA_## Quantity 1000 Movement type 501 GI receipt w/o PO Plant 1000 Storage location 0001

(C) SAP AG LO640 2-25

Now create a second material master record: You can use material P-402, as a reference. This material was mentioned at the beginning of this unit. Material MFE_## Industry sector Mechanical engineering (M) Material type Finished product (FERT) To create the material master, select the following views: – Basic Data 1 – Sales - Sales Org. Data 1 and 2 – Sales – General/Plant data – Foreign Trade: Export data – Accounting 1 (you may have to page down to select this view) – Costing 1 (you may have to page down to select this view) Enter the following organizational data (or copy the reference material using Copy from…): Plant 1000 ________________________ Sales organization ____ Germany (Frankfurt) Distribution channel 10 Maintain the required fields. Make sure that the short text is maintained in German, English and French (Use the Additional data function). View: Basic data 1 Base unit of measure PC piece(s) Material group ____ Metal processing Division ____ Pumps Net weight 250 KG Gross weight 280 KG View: Sales – Sales org. data 1 Sales unit <BLANK> Delivering plant 1000 Tax classification 1 View: Sales: general/plant data Transportation group ____ On pallets

(C) SAP AG LO640 2-26

Loading group ____ Forklift Setup time 1 (day) Proc.time 2 (days) Base qty 1 View Foreign Trade: Export Comm./imp. code no. 84136041000 ________________________ Country of origin ____ Germany Region of origin ____ Hamburg Export/import group 0001 ________________________ View: Accounting 1 Valuation class ____ Finished products Price control S Price unit 1 Standard price 1396.24 Post goods receipt for this material: Select the create goods receipt function in the Documents section of the General Foreign Trade Processing cockpit. (46B: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → Other, and enter the movement type, plant and storage location first.) Select Goods receipt and Others from the input help fields at the top of the screen.On the Material, Qty and Wk tabs, maintain the following data: Material MFE_## Quantity 1000 Movement type 501 GI receipt w/o PO Plant 1000 Storage location 0001 Note: You can create corresponding material prices (condition type PR00) for both materials: Select Material → Change in the Master data section of the General Foreign Trade Processing cockpit. Then choose the Sales: Sales Org. Data 1 view for sales organization 1000 and distribution channel 10. Use the Conditions button to go to price maintenance for this material. Material MHA_##: 87.50 UNI/PC

(C) SAP AG LO640 2-27

Material MFE_##: 6,100.00 UNI/PC

(C) SAP AG LO640 2-28

3 Purchasing info record Communication between the vendor and your plant is easier if you use purchasing info records. Create the following purchasing info record. Select the create purchasing info record function in the Master data section of the General Foreign Trade Processing cockpit.

Vendor KEU_## Material MHA_##: Purchasing org. 1000 Plant 1000 Info category Standard Maintain the following data: View: General Data Country of origin FR France Region 60 ________________________ View: Purch. Organization Data 1 Planned delivery time 3 Standard qty 20 Minimum qty 10 Net price 100 FRF Exp/imp. procedure ____ Permanent Import

(C) SAP AG LO640 2-29

4 Customer master record Your company has a new customer in France. Create a new customer master record. Select the create customer function in the Master data section of the General Foreign Trade Processing cockpit. Customer DEU_## Company code 1000 Sales organization 1000 Germany Frankfurt Distribution channel 10 Final customer sales Division 00 Cross-division Account group 0001 Sold-to party

Country ____ France Language ____ English Transportation zone North France If you use the Reference function, make sure that you specify all organizational levels. Enter all necessary data on the Address screen. Proceed to the Control data screen. Enter the VAT registration number (FR12345678908 for France) here. Remember that the number begins with the alphanumeric country code and that there is a checking rule behind this field. Under Company code data → Account management, there are two fields you must maintain: Reconciliation account: 141000 Trade Receivables - foreign Cash mgmt group E3 Foreign customers

On the next tab (Payment transactions), maintain: Terms of payment ZB01 Within 14 days 3% cash discount, Within 30 days 2% cash discount... Then, maintain the necessary Sales area data: Shipping conditions 02 Standard Delivering plant 1000 Incoterms DAF Saarbrücken Terms of payment ____ Within14 days, 3% cash discount, Within 30 days, 2% cash discount… Tax classification 1

(C) SAP AG LO640 2-30

5 Overview of all your customers in a specific country You want an overview of how many customers your company has in the US. How do you do this? __________________________________________________________

Select Monitor customer in the Controlling section of the General Foreign Trade Processing cockpit. On the General selection criteria tab, enter US in the Country field and execute the report. Click on the first line to expand the report. You can also expand each master record in this list in order to make sure it contains all the necessary data.

6 Customizing (optional) Customizing contains important data and system settings for foreign trade. All data relevant to foreign trade, such as the commodity code of a material, the business transaction type, and the export procedure, are defined in Customizing for foreign trade. To access Customizing, select Tools → AcceleratedSAP → Customizing → Edit Project. Maintain the following (fictitious) data: Business transaction type ## Export procedure #### In Customizing, select: Sales and distribution → Foreign Trade/Customs → Basic Data for Foreign Trade →Define Business Transaction Types and Default Value → Define business types → Define Procedures and Default Value à Define procedure You can also go to the function for defining procedures and business transaction types from the Periodic Declarations cockpit by selecting Wizard Dispatch/Export. You can change or display commodity codes by using the Code number function in the Environment section of the General Foreign Trade Processing cockpit.

(C) SAP AG LO640 2-31

(C) SAP AG LO640 2-32

Basic Data - Solutions

Unit: Basic Data

1 Vendor master Cockpit: General Foreign Trade Processing; section: Master data. Select Vendor → Create.

2 Material master Cockpit: General Foreign Trade Processing; section: Master data: Select Material → Create.

3 Purchasing info record Cockpit: General Foreign Trade Processing; section: Master data: Select Purchasing info record → Create.

4 Customer master Cockpit: General Foreign Trade Processing; section: Master data. Select Customer → Create.

5 Overview of all customers in one country Cockpit: General Foreign Trade Processing; section: Controlling. Select Monitor customer.

6 Customizing Select the following menu path in Customizing: Sales and distribution → Foreign Trade/Customs → Basic Data for Foreign Trade → Define Business Transaction Types and Default Value → Define business types → Define Procedures and Default Value → Define Procedure You can also go to the function for defining procedures and business transaction types from the Periodic Declarations cockpit by selecting Wizard Dispatch/Export. You can change or display commodity codes by selecting Code number in the Environment section of the General Foreign Trade Processing cockpit.

(C) SAP AG LO640 2-33


SAP AG 1999


l Foreign Trade / Import

l Foreign Trade / Export

l Incompleteness

l Foreign Trade Cockpit

Contents:


SAP AG 1999

Documents in Foreign Trade: Unit Objectives

l Identify correlations between master data and Customizing objects

l Correctly use the influencing factors and the various control parameters in the SAP System

l Make optimum use of the monitoring capabilities



SAP AG 1999

Documents in Foreign Trade: Overview Diagram

Introduction

Basic Data



Legal Control




Import Basis Module


SAP AG 1999

Foreign Trade Data in the Supply Chain

Business transactionreceipt / import

Business transactiondispatch / export

Materials Management Sales and Distribution

PlantVendor

Purchase order

Inbound delivery

Goods receipt

Invoice

Customer

Order

Goods issue

Billing document

Outbound delivery

n You can maintain the data necessary for import processing during the MM process in the purchase order, in the inbound delivery, and as of Release 4.6A, in goods receipt.

n You can enter the data necessary for export processing during the SD process in the delivery and the billing document. You can maintain the data necessary for legal control and documentary payments in the sales order.


SAP AG 1999

Cockpit: General Foreign Trade Data

General Processing in Foreign Trade



Preference Processing

Data Service

Legal Control


Create, display or change foreign-trade data in purchasing or sales and distribution documents

Import/export documents

Programs for creating journals and statistics

Cockpit: General Foreign Trade Data

CustomizingMaster

data

Monitoring/maintaining master data and Customizing

Programs for checking and maintaining specific foreign-trade data in documents

Doc.382138343839. . .

Status of foreign-trade data

HeaderxEE

. . .

ItemxEx. . .

n The Foreign Trade Cockpit gives you central access to all foreign trade functions in your SAP System. The cockpit is divided into several sections such as processing, periodic declarations, legal control and data service.

n The following functions are available in the General Foreign Trade Processing cockpit: � Selection, analysis and processing of import- and export documents (and document creation, as of

Release 4.6C) � Creation and modification of master data (material, vendor, customer, purchasing info record,

statistical value) � Monitoring/Controlling the completeness of the foreign trade data in master records (material,

vendor, customer) � Maintenance of data in Customizing (import code numbers, countries, currencies, ...)


SAP AG 1999

Foreign Trade / Import

l Addressl Languagel Currencyl VAT registration

numberl Incotermsl Mode of transportl Customs office of

entry

l Country of originl Region of originl Import procedurel Incoterms

Customizing

l Commodity codel Import code numberl Weightl Unit of measure

Customizing

Purchase order

Inbound delivery

Goods receipt

Invoice

FI document

VendorPurchasing info

record

Material

l Geographical information

Default Defaultl Business

transaction type

n When you create purchase orders, data relevant for import is determined by using various master data (vendor, material, purchasing info record) and default values from Customizing.

n In Customizing, you can set up the system to automatically propose foreign trade data at header level (IMG: Default header data in foreign trade). You can also set the business transaction type as a default.

n At company code level, you can also determine when the system displays import data screens : always, never, for all imports, or only for imports from the European Union.

n Foreign trade data can be proposed independently for stock transport orders (IMG: Default values for stock transport orders).

n If you want to reflect special business situations in your system, you can use the corresponding user enhancements, which allow you to implement your own logic by setting defaults for foreign-trade data on header- and item level.

n The Foreign Trade Cockpit allows you to change or add to the foreign trade data in the MM documents by using a separate maintenance transaction.


SAP AG 1999

Foreign Trade / Import - Process

Business transactionReceipt / Import

Plant

Vendor

Inbound delivery

Goods receipt

Invoice

HeaderHeader

ItemItem

ItemItem

Import data

Vendor 1080Vendor 1080

• 010 DPC1000• 010 DPC1000

• 020 P-402• 020 P-402

Foreign TradeMaterials

Management

Purchase order

n Import transactions are automatically recognized by the system. n Import-data screens are generated for this process in the purchase order, inbound delivery and, as of

Release 4.6A, in goods receipt. n If import-relevant data is missing, the system displays the import screens automatically so that you

can enter the data. n You can change or add to the existing data at any time. You can also maintain different import-data

views of relevant documents directly from the foreign trade cockpit. In other words, it is not necessary to use the transaction in materials management to call up the document.

Note: The inbound delivery (also referred to as "shipping notification" before Release 4.5) is not recommended for use within the materials management document chain. This means that goods receipt can be recorded directly with reference to a purchase order. In the demonstrations and exercises included in this course, the inbound delivery document is not treated as a part of the procurement process.


SAP AG 1999

Foreign Trade / Import - Header

Transportation / Authorities

Geographical information

Invoice / Preliminary document

x y zXYZ, Inc.

Invoice

System statusBoss

Materials Management DocumentHeader: Foreign Trade Data

n The different types of data in the import header are valid for the entire document. n All data that was proposed or entered manually is checked against the check objects. n The mode of transport, the domestic mode of transport and the customs office are determined from

the vendor master. You can also enter default values in Customizing (Implementation Guide: Default header data in foreign trade).

n The system uses the incompletness log to determine whether an import document is complete.


SAP AG 1999

Foreign Trade / Import - Item

Materials Management DocumentItem: Foreign Trade Data

Values

Customs data

Legal classification

Invoices / Preliminary documents /Verification documents

Business transaction type

Origin / Destination

x y zXYZ, Inc.

Invoice

Contract

System statusBoss

n The data in the import item is valid for the corresponding document item. n All data proposed or entered manually is checked against the check objects. n The import code number is proposed from the material master. n The system determines the country of origin and the import procedure from the purchasing info

record. n The destination country and the destination region are taken from the plant. n The transaction type is determined from one of its default values. The default is based on: Purchasing

document category, purchasing document type, and an item category of country. n The statistical value is determined automatically as part of pricing, provided condition type GRWR

is part of the pricing procedure and condition records have been created. n Customs code determination occurs using its own default values (compare with the Import Basis

Module unit). n As of Release 4.6C, a check object is available for the combination of business transaction type and

procedure.

(C) SAP AG LO640 3-10

SAP AG 1999

Determination of Foreign Trade Data (Goods Receipt)

Customizing

Extended import document control

Call up import data screens for purchasing documents

Purchase order

Goods receipt

Invoice

Company code:

Import screens in purchasing document

Call up import data screens for goods receipt

Copying control - goods receipt

Inbound delivery

n You can use the company code to control at which point the import data screens should be processed. You can choose to call up import data screens in different document(s) and different steps of the purchasing process.

n You can use the Import Screens in Purchasing Document activity in the Implementation Guide (IMG) to set when import screens should be generated in the purchase order and the inbound delivery. The options include: � Always � Never � For all imports, � Only for EU imports

n You can use the Extended Import Document Control activity in the IMG to set whether import data screens should also be processed in goods receipt, and if so, under what circumstances. You can use the copying control to activate determination of goods-receipt import data, which the system copies from the purchase order.

(C) SAP AG LO640 3-11

SAP AG 1999

Foreign Trade / Export

l Addressl Languagel Currencyl VAT registration

numberl Incoterms

l Commodity codel Country of originl Region of originl Weightl Unit of measurel CAS numberl PRODCOM

numberl CAP product data

Order

Outbound delivery

Goods issue

Billing document

FI document

Customer Material

Customizing Customizing

Defaultl Geographical

information

l Business transaction type

l Export procedure

Default

n The delivery is the first point in the SD document flow (order - delivery - billing document) at which the system can determine and assign export data. The business transaction type can be entered in the order because it may be used during legal control. Financial documents can also be assigned in the order.

n As the delivery is generated, the data that is relevant for export is determined using various customer- and material masters and default values in Customizing (IMG: Default header data in foreign trade). You can also set the business transaction type as a default.

n In copy control of the document flow from the delivery to the billing document, you can define whether the system redetermines the export data when you create a billing document or whether it copies or references the export data determined in the delivery.

n If you want to reflect special business situations in your system, you can use the corresponding user enhancements, which allow you to implement your own logic by setting defaults for foreign-trade data on header- and item level.

(C) SAP AG LO640 3-12

SAP AG 1999

PlantCustomer

Foreign Trade / Export - Process

HeaderHeader

ItemItem

ItemItem

Export data

Customer 1450Customer 1450

• 010 DPC1000• 010 DPC1000

• 020 P-402• 020 P-402

Foreign TradeSales and

Distribution

Order

Goods issue

Billing document

Outbound delivery

Business transactionDispatch / Export

n Export transactions are automatically recognized by the system: � In the delivery if the country of departure of the shipping point is different from the ship-to

country and � In the billing document if export data is already maintained in the delivery or if the country of the

shipping plant is different from the ship-to country n You can change or add to the existing data at any time. You can also maintain different export-data

views of relevant documents directly from the foreign trade cockpit. In other words, it is not necessary to use the transaction in sales and distribution processing to call up the documents.

(C) SAP AG LO640 3-13

SAP AG 1999

Foreign Trade / Export - Header

Sales and Distribution document

Header: Foreign trade data

Transportation / Authorities

Geographical information

Customs data

System statusBoss

n The different types of data in the export header are valid for the entire document. n All data proposed or entered manually is checked against the check objects. The country used for

validation is the country of departure of the shipping point or the country of the company code. n The system determines the mode of transport at border crossing, the domestic mode of transport and

the office of exit from the route. You can also enter default values in Customizing (Implementation Guide: Default header data in foreign trade).

n A user exit allows you to assign your own default values to the export header data.

(C) SAP AG LO640 3-14

SAP AG 1999

Foreign Trade / Export - Item

Sales and distribution document

Item: Foreign trade data

Values

Legal classification

OriginBusiness transaction type

Contract

System statusBoss

n All data proposed or entered manually is checked against the check objects. The country used for validation is the country of departure of the shipping point or the country of the company code.

n The system determines the export procedure from a proposal object based on the country, the sales area (sales organization, distribution channel, division), the export/import group from the material master and the item category of the document.

n The transaction type is determined from one of its default values. The system determines the default value based on the country, the sales organization, the distribution channel and the item category of the document.

n The statistical value is determined automatically as part of pric ing, provided condition type GRWR is part of the pricing procedure and condition records have been created.

n Before the billing document is transferred to Financial Accounting, the system checks to make sure the export item data is complete. If data is incomplete for any of the fields, the document cannot be transferred to FI.

n A user exit allows you to assign your own default values to the export item data. n Entries for default values can be made generically for the export procedure and the business

transaction type. This means that certain key entries can be made with BLANK. n As of Release 4.6C, a check object is available for the combination of business transaction type and

procedure.

(C) SAP AG LO640 3-15

SAP AG 1999

Determining Foreign Trade Data for Billing Documents

Customizing

Determine foreign-trade segment

Copying control:

Delivery document after billing document

Source LF Target F2

A

B

Foreign trade data:Reference the delivery

Copy from the delivery

Redetermine

OrderOR

DeliveryLF

Billing document

F2

Billing document

F5

Billing document

F8

!

!

!

Intercompany billing IV

!

n The Sales and Distribution (SD) copying control for billing documents allows you to use three different procedures for determining export data in the billing document:

n Option 1: The export data in the delivery is referenced. Delivery and billing document data is stored in the same data record. If you change data in the billing document, this change is also reflected in the delivery data.

n Option 2: The export data in the delivery is copied into the billing document. Two separate but identical data records are created for the delivery and the billing document. Changes in the billing document do not affect the data in the delivery.

n Option 3: The export data is redetermined for the billing document (completely independent of the delivery). The data records are separate and therefore may contain varying information. This option is especially useful in cases where several deliveries with different export data are to be included in one billing document. Redeterming the data in the billing documents lets you avoid splitting the billing document into separate data for each of the deliveries it includes.

(C) SAP AG LO640 3-16

SAP AG 1999

Incompleteness - Overview

Item

10

20

30

Material

M1

M2

M3

Quantity

10

20

15

Business partner: K1

Foreign trade:import/export

Customizing

Procedure header

l Definen Optionaln Requiredn Hidden

l Assign

l System response

Customizing

Procedure item

l Definen Optionaln Requiredn Hidden

l Assign

l System response

n You can define different incompletion procedures at document header and document item level. n You can then assign document fields to these procedures and use field control as follows: � Hidden field Field control: 0 � Field ready for input, incompletion check not active Field control: 1 � Field ready for input, incompletion check active Field control: 2 � Required field, incompletion check active Field control: 3

n You can then assign the procedures that you have defined to the countries based on the goods direction. You can also define which message type the system issues when documents are incomplete.

(C) SAP AG LO640 3-17

SAP AG 1999

Foreign Trade Documents: Summary

l The availability of complete foreign trade data allows integrated and consistent import and export processing in foreign trade.

l The system retrieves information from master data and Customizing objects, validates them and proposes them in the document.

l You can change or manually add import- and export-relevant data at header- and item level.

(C) SAP AG LO640 3-18

Documents in Foreign Trade - Exercises


You have familiarized yourself with the master data relevant for foreign trade in the previous unit. Now, you want to analyze the corresponding data in the purchasing documents and the sales and distribution documents. You can use the General Foreign Trade Processing Cockpit to create new documents, or monitor and maintain existing documents centrally.

In this unit, we will be working through two major processes:

• Import from an EU country into Germany Purchase order - Goods receipt - Invoice

• - Export from Germany into an EU country - Order - Outbound delivery - Goods issue - Billing document

SAP AG 1999

Business transactionReceipt / import

Business transactionDispatch/exportPlantPlant

Purchase orderPurchase order

Goods receiptGoods receipt

InvoiceInvoice

MMSales orderSales order

Outbound deliveryOutbound delivery

Goods issueGoods issue

Billing documentBilling document

SD

VendorVendor CustomerCustomer

Exercises - Unit 3 - Documents in Foreign Trade

(C) SAP AG LO640 3-19

1 Purchase order Select the create purchase order function in the Documents section of the General Foreign Trade Processing cockpit. (Release 4.6B: Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known) You send the following purchase order to a vendor: Vendor KEU_## Order type ____ Standard PO Document date <Today’s date> Purchasing organization 1000 ________________________ Purchasing group 001 ________________________ Company code 1000 ______________ Go to the item overview to enter the purchase-order item data: Material MHA_## PO quantity 10 PC Delivery date <beginning of next month> Plant 1000 Storage location 0001 Net price 100.- Check to make sure that the confirmation control is deactivated (set to blank) at item level. (Otherwise the system will expect confirmation–in the form of a shipping notification or inbound delivery–before posting goods receipt.) If the import data at header level is incomplete, maintain the necessary data before continuing. You can also maintain the remaining import data. This data will be required later for processes such as Declarations to the authorities or Printing export documents. If the import data at item level is incomplete, you must maintain at least the following data: Goods no. / Imp. code no. 85402003010 ________________________ Country of origin ____ France Region of destination ____ Hamburg Country of destination ____ Germany Import procedure ____ Permanent Import Transaction type ____ Purchase/Sale You can have the system propose an import transaction type. The Country key is a proposal element.

(C) SAP AG LO640 3-20

Which country is it? _____________________________ Post this purchase order. Purchase order no.: _______________ You can use Customizing to control whether import data is hidden or shown in the purchase order. Which keys can you make settings for in Customizing? __ Meaning: ______________ __ Meaning: ______________ __ Meaning: ______________ __ Meaning: ______________

2 Goods receipt The goods have arrived and you would like to create the necessary goods receipt. Select the create goods receipt function in the Documents section of the General Foreign Trade Processing cockpit. (Release 4.6B: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → Goods Receipt → For Purchase Order → PO Number Known) Purchase order (from exercise 1 in this unit) Indicate item as OK (lower left corner) Save the goods receipt. Goods receipt no. _______________

(C) SAP AG LO640 3-21

3 Invoice The vendor sends you an invoice. Select the create invoice function in the Documents section of the General Foreign Trade Processing cockpit. (Release 4.6B: Logistics → Materials Management → Purchasing → Purchase Order → Follow-On Functions → Logistics Invoice Verification) Transaction Invoice Invoice date Today's date Posting date Today's date Amount 1000 Currency (Document currency from exercise 1 in this unit) Tax code V0 Purchase order (From exercise 1 in this unit) Save the invoice. Invoice no.: _______________

4 Overview of goods receipt Display all goods receipts for your vendors. Describe how you performed this step.

_____________________________

After the purchasing activities, we would now like to turn our attention to sales activities.

(C) SAP AG LO640 3-22

5 Sales order Your customer DEU_## places the following order: (Select the create order function in the Documents section of the General Foreign Trade Processing cockpit.) (Release 4.6B: Logistics → Sales and Distribution → Sales → Order → Create) Order type OR (Standard order) Sales organization 1000 Distribution channel 10 Division 00 Customer DEU_## Purchase order number ##-01 Material MHA_## Quantity 10 Delivery date <End of next month> If the condition type PR00 is missing from the item, you can enter this condition type and the basic sales price on the condition screen for the item manually. Check whether the statistical value has been calculated.

SAP delivers a sample condition type in the standard system for the calculation of the statistical value, which can be used as a model for user-specific condition types. Which parameters influence this condition type?

Condition type: ________________

Key: ________________

________________

________________

________________

After you have processed the incompleteness log, save the sales order. Order no: _______________

(C) SAP AG LO640 3-23

6 Outbound delivery The goods are now ready to leave your plant. To illustrate this process in the system, you must create an outbound delivery. Describe how you performed this step. ____________________________________________ (Select the create delivery function in the Documents section of the General Foreign Trade Processing cockpit.) (Release 4.6B: Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Create → Single Document → With Reference to Sales Order) Shipping point 1000 Order no. (From exercise 5 of this unit) Maintain export header data: Goto → Header → Foreign Trade/Customs Maintain the export data in the item: Goto → Item → Foreign trade/customs Save the outbound delivery. Outbound delivery no.: _______________

7 Picking the outbound delivery Select the outbound delivery that you just created. Stay on the initial delivery screen (do not use ENTER to go back to the overview screen). (Release 4.6B: Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Change → Single Document) Picking occurs in Lean WM via transfer order: From the menu, select Subsequent functions → Create transfer order Save delivery data: yes Warehouse number 10 Foreground/background (processing) Background Adopt pick. qty 2 (The transfer order is created in the background, the picking quantity is used as the delivery quantity in the outbound delivery and goods issue is posted.)

(C) SAP AG LO640 3-24

8 Customer billing document The outbound delivery that was created must be billed. In this case it is a trade billing document. Select BillDoc → Create doc. in the Documents section of the General Foreign Trade Processing cockpit. (Release 4.6B: Logistics → Sales and Distribution → Billing → Billing Document → Create) Outbound delivery (From exercise 6 in this unit)

If necessary, change the foreign trade data at header and item level. Note: If the foreign trade data is incomplete, you can not set up a complete INTRASTAT declaration later. Save this customer billing document. Billing document no.: _______________

(C) SAP AG LO640 3-25

Documents in Foreign Trade - Solutions


1 Purchase order Cockpit: General Foreign Trade Processing; section: Documents. Select Purchase order → Create doc. (Release 4.6B: Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known The system determines the business transaction type in the Implementation Guide (IMG) in the following activity: Foreign Trade/Customs → Basic Data for Foreign Trade → Define Business Transaction Types and Default Value → Define Default Business Transaction Type (MM) The country to use as the default element for determining business transaction type is the import country (in other words, the country to which the shipment is being delivered). In this case, it is the country where your plant is located. Hiding or displaying import data is controlled in the IMG in the following activity: Foreign Trade/Customs → Control Foreign Trade Data in MM and SD Documents → Import Screens in Purchasing Document The following options are available: - Call up import data screens in the case of EU import only Option: <BLANK> - Call up import data screens for every import Option: 1 – Never call up import data screens Option: 2 – Always call up import data screen Option: 3

2 Goods receipt Cockpit: General Foreign Trade Processing; section: Documents. Select Goods recpt → Create doc. (Release 4.6B: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → PO Number Known)

(C) SAP AG LO640 3-26

3 Invoice Cockpit: General Foreign Trade Processing; section: Documents. Select Invoice → Create doc. (Release 4.6B: Logistics → Materials Management → Purchasing → Purchase Order → Follow-On Functions → Logistics Invoice Verification)

4 Overview of goods receipts Cockpit: General Foreign Trade Processing; tab Operative cockpit; section Import. Select Actual

5 Sales order Cockpit: General Foreign Trade Processing; section: Documents. Select Order → Create doc. (Release 4.6B: Logistics → Sales and Distribution → Sales → Order → Create) Statistical value: Goto → Item → Conditions Condition type for calculating the statistical value: GRWR Business transaction type The access sequence in the standard system for determining the statistical value contains the following parameters: – Sales organization – Distribution channel – Division – Incoterms (type of execution): Goto → Item → Sales A

6 Outbound delivery Cockpit: General Foreign Trade Processing; section: Documents. Select Delivery → Create doc. (Release 4.6B: Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Create → Single Document → With Reference to Sales Order)

(C) SAP AG LO640 3-27

7 Picking the outbound delivery Cockpit: General Foreign Trade Processing; section: Documents. Select Delivery → Change doc. (Release 4.6B: Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Change → Single Document) Menu (on the initial delivery screen): Subsequent functions → Create transfer order

8 Customer billing document Cockpit: General Foreign Trade Processing; section: Documents. Select BillDoc → Create doc. (Release 4.6B: Logistics → Sales and Distribution → Billing → Billing Document → Create) Maintaining the export data in the header: Goto → Header → Foreign Trade/Customs Maintaining the export data in the item: Goto → Item → Foreign Trade item


SAP AG 1999

Import Basis Module

l Goals

l Basic data

l Basis for EDI communication

Contents:


SAP AG 1999

Import Basis Module: Unit Objectives

l Describe the idea behind the Import Basis Module

l Explain how the system is equipped to handlefuture processes



SAP AG 1999

Import Basis Module: Overview Diagram

Introduction

Basic Data



Legal Control




Import Basis Module


SAP AG 1999

Import Basis Module - Key Objectives

Largely industry-independent

Foundation for future EDIprocesses

Worldwide availability

Importer

n The Import Basis Module creates and organizes all data that is relevant for customs in a country- and industry-independent fashion.

n As a basis for the data definitions, the system uses future official customs systems, which in turn are based on the UN/EDIFACT standard messages CUSDEC (Customs Declaration) and CUSRES (Customs Response).

n This method builds a foundation for paperless communication with customs officials and the business sector.


SAP AG 1999

Basic Data

Classic master data

Additional data

Customs duty rates

Materialmaster


Partner(Vendor)

Partner(Customs)

l Customs quotal Pharmaceutical productsl Customs exemptionl Preferencel General duty ratel Anti-dumping

Condition records

Customizing

- Import code numbers- Countries involved- Import procedure

- Verification document type- Preliminary document type- Authorities

n Information is added to classic master data and new objects are also created for the Import Basis Module.

n Maintenance of various customs duty rates is important for import levy billing and for import simulation. These include: � Customs quota Condition type: CUZK � Pharmaceutical products Condition type: CUPE � Customs exemption Condition type: CUAS � Preferential customs duty rate Condition type: CUPZ � General duty rate Condition type: CUDL � Anti-dumping Condition type: CUAD


SAP AG 1999

Customizing - Commodity Code/Code No.

Customizing

CustomizingDefine length ofcommodity codes/code numbers

CountryDEDE

USUS

DirectionReceipt/ImportDispatch/Export

Receipt/ImportDispatch/Export

Length118

1010

Define commodity codes/code numbers percountry

Number 8605 0000 000Description Passenger cars, baggage cars,

including special railway cars

Country DE

Special unit of measure

Additional information

Receipt/import and dispatch/export

Receipt/Import1

Dispatch/Export2

1.

2.

n You can maintain the commodity codes and import code numbers in various ways. n You can specify the length of the commodity code or import code number for each country

(Customizing) � Example: JAPAN Import code number 10 characters

Commodity code 10 characters � Example: USA Import code number 10 characters

Commodity code 10 characters � Example: EU Import code number 11 characters

Commodity code 8 characters n Use the additional information to define how the system is to interpret the commodity code or import

code number: � Additional information __ - Number is used as both commodity code and import code number � Additional information 1 - Number is only used as the import code number � Additional information 2 - Number is only used as the commodity code

n The next two slides illustrate the effects of these settings for each option using the European Union as an example:

n 11/__ means that the length of the commodity code or code number has 11 characters in the material master and that the entry in the additional information field is BLANK.

n The legal length of the commodity codes is also defined in Customizing.


SAP AG 1999

Customizing: Import Code Numbers

Option

Process

Material master

Purchasing documentsn Commodity coden Import code no.

Declarations toauthorities

Import simulation

Prepare customs declaration

Import code number information

11/ 11/ 11/08/ 08/ 08/1 1 2 2

ü ü ü ü ü üü ü ü ü ü üü ü ü üü ü ü ü ü ü

ü ü ü ü

ü ü ü ü

ü ü

n The various options for maintaining commodity codes and import code numbers and their effects on the relative functions are illustrated in the table above and those following, which are shown in terms of the European Union. First, we focus on import.

n Legend: � Green/check - Function is available � Yellow/exclamation mark - The system responds with a warning � Red/"x" - Function is not available

n Changes in master data regarding these numbers normally require large investments of time and effort. Therefore, you should always be certain which business management functions are currently necessary and which ones may become necessary in the future.


SAP AG 1999

Customizing: Export Commodity Code

Option

Process11/ 11/ 11/08/ 08/ 08/1 1 2 2

Material master

Purchasing documentsn Commodity code

Declarations toauthorities

Print documents

Commodity code information

ü ü ü ü ü ü

ü ü ü ü ü ü

ü ü ü ü ü ü

ü ü ü ü ü ü

ü ü ü ü

n This table depicts the effects of the various options on export processes.


SAP AG 1999

Code Number Information

Import code numbers found: 2

to

to

Section DescriptionXVIII Optic, photographic, or ...

Chapter Description

92 Music instruments; parts and accessories

Import code number Description

9207 90 10 00 1 Music instruments; parts and accessories9207 92 00 00 1 Guitar parts and accessories

One special unitof measurement

Only special units of measurement

Text selectionSearch for

Case-sensitivesearch

Import code numberChapter

NumberCountryLanguage

92

GBEN

Unit of measurement

Guitars

Selection

Information

n The information function lets you carry out targeted searches for import code numbers. n You can limit the search according to unit, import code number, special units of measurement and

text entry.

(C) SAP AG LO640 4-10

SAP AG 1999

Authorities / Approval Numbers

Customizing: Define AuthoritiesDescriptionAuthority

HJA

HJA. . .

ROT

KA Main customs office - Karlsruhe

Main customs office - Rotterdam

Customizing: Define Approval NumbersApproval number

DE

Country

. . .6500 / A1 / L1

Description

. . .Recordkeeping process

Customizing: Assign Plants to Approval NumbersApproval number

1000

Plant

. . . .

6500 / A1 / L1

. . . .1000 6500 / A2 / 5

n The system lets you enter the authorities that are involved in the import process. n You can record the customs approval numbers assigned to places of work. Some examples of

customs approval numbers include: � Allowed ship-to party � Recordkeeping process � Simplified declaration procedure

n This also applies to the necessary preference documents, preliminary documents and verification documents. This way, you can depict both the customs and the commercial measures in the SAP System.

n The layout of your import tasks will be easily comprehensible and more effective once you set this data.

(C) SAP AG LO640 4-11

SAP AG 1999

Customs Duty Rates - Definition (1)

Customs quota Condition type: CUZKHome

country Code no. Origin Material

Pharmaceutical products Condition type: CUPE

Homecountry Code no. CAS no. Material

Customs ceiling Condition type: CUZPHome

country Code no. Origin

Customs exemption Condition type: CUASHome

countryCode no. Material

Procedure Cust. quota code

n The standard pricing instruments are used to determine customs duties. n Pricing procedure RMIMP0 is included in the standard package. n For every condition type, you can record condition records relating to percentage, quantity and

weight.

(C) SAP AG LO640 4-12

SAP AG 1999

Customs Duty Rates - Definition (2)

Preferential customs duty Condition type: CUPZ

Homecountry Code no. Origin Material

General duty rate Condition type: CUDLHome

countryCode no. Origin

Anti-dumping Condition type: CUAD

Homecountry Code no. Origin Producer Exporter Material

Dispatch country

Dispatch country

n Customs duty pricing is structured in such a way that exactly one condition record is determined. n As soon as a customs duty rate is found, the system ignores all other custom duty rates. n The system figures anti-dumping condition records for the customs duty rate that was determined.

This means that a maximum of two condition records can be determined for the customs duty. n All MM pricing resources are available to you. The condition types in the standard program can

serve as a basis for your individual condition types.

(C) SAP AG LO640 4-13

SAP AG 1999

Standard Scenario

Relevant customs officeRelevant customs office

Customs office of entryCustoms office of entry

• Customs

• Import turnover tax

• Excise duty

Office of exitOffice of exit

Tennessee

Walldorf

Import from

USA to

Germany

DistilleryTennessee

EU border

Liquor store(Walldorf)

Issuing authority: USA

Bourbon

Whiskey

Duties

Documents / Authorities

Hamburg

Preliminary document: T1 transit document

Verification document: Certificate of authenticity

n The goods are imported from the USA via Hamburg. n The duties are not paid in Hamburg. Accompanied by a T1 transit document, the goods make their

way to Walldorf. n The ship-to party in Walldorf reports to the customs office for that region, where the customs

officials clear the goods.

(C) SAP AG LO640 4-14

SAP AG 1999

Import Simulation - Parameters

Import documents Simulationfrom animportdocument

Simulationindependentof import documents

Input screen:Vendor

Material

Import code no.

Origin

. . .

Vendor 1450

Item:MaterialImport code numberOrigin. . .

DPC10009844 0010 000FR. . .

Simulation result:

Necessary verification/preliminary documents, ...

Authorities involved

Preference situation

Customs code

Amount of customs duties

n You can determine the following import data by using import simulation: Customs duties; necessary verification documents; authorities involved; preference situation

n This simulation can be called up either directly from document processing or completely independent of document processing as a straight simulation.

n Depending on the control table settings for import simulation, certain input fields on the Create screen are required fields. You can also deactivate certain processing blocks, if necessary.

n The import simulation results in information regarding the necessary verification documents and authorities (import- and export countries).

n In addition, the system gives you data about the preference situation. In other words, the system determines the necessary preference verifications and preference codes.

n Using Materials Management (MM) pricing, you can determine any customs duties for the import process that are missing. By accessing the pricing screen, you can enter more information regarding discounts, insurance costs, and so on.

n Customs duties are determined using the standard MM pricing tools. n You can manually enter and modify certain condition types such as discount, freight and insurance

for a more detailed calculation of the base value and the customs duties. n Using the analysis function, you can determine how the system processed the individual condition

records.

(C) SAP AG LO640 4-15

SAP AG 1999

Import Basis Module: Summary

l Correct and complete maintenance of the relevantmaster data is important. This is especially true forthe import area, since documents such as verification documents and customs declarations can only be issued accurately if the data they are based on is also accurate.

l Careful planning in the import area should be accompanied by the step-by-step introduction ofnew EDIFACT-based procedures.

(C) SAP AG LO640 4-16

Import Basis Module - Exercises

Import Basis Module

• Administration of commodity codes and import code numbers • Explain differences between commodity codes and import code

numbers • Classify materials • Determination of customs duty and other customs data

In your company, you are responsible for maintaining the commodity codes and classifying materials.

(C) SAP AG LO640 4-17

1 Creating new commodity codes Create new commodity codes and import code numbers for Germany. What length has been predefined in the system for the commodity codes and import code numbers for Germany? Commodity code: ___ Import code number: ___

Create a new commodity code (824010##) for Germany with a supplementary unit of Gram Gold and the description “Commodity code for group ##”. Addit. information ___ Create a new import code number (854020010##) for Germany with the description “Import code number for group ##”. Addit. information ___ Create a new code number (864020020##) that can be used for both importing to and exporting from Germany. Use “Code number for group ##” as the description. Addit. information ___

(C) SAP AG LO640 4-18

2 Finding code numbers You can use the information search for commodity codes and import code numbers to assign tariffs to new materials. Use the supplementary unit (special unit of measure) Gram Gold as the search criteria to find commodity code 824010## for Germany. Which chapter and section is this commodity code assigned to? Chapter ________________________________________________________ Section ________________________________________________________ Run a search for all import code numbers that contain the string group ## in the description. Code numbers: _________________________________ _________________________________ Why does the system display two import code numbers? Reason: __________________________________________________ __________________________________________________ __________________________________________________

3 Data for the import process You want to do your co-workers in the German purchasing department a favor by providing them with all the data necessary to simulate an import. Which code for Customs quota has been maintained for material DPC1000_AS with the import code number 85402003010?

_____ _________________________________

Which Anti-dumping code has been maintained for material DPC1000_AS with the import code 85402003010?

_____ _________________________________

(C) SAP AG LO640 4-19

4 Import simulation As a purchaser, you need to determine the duties to be paid for importing material DCP1000_AS and the import documents that are necessary. Call up an import simulation in the Data Service Cockpit with the following selection criteria: Plant 1000 Hamburg Importing ctry DE Germany Dispatch cntry US USA Ctry of origin FR France Exporter 1 Forks Manufacturing GmbH Mfr 2 Electronic Components Distributor Vendor 100007 Kenneth K. Krediman Material DPC1000_AS Hard disk 12 GB Import code no. 85402003010 Hard disk for LO640 ... Quantity 100 Unit PC piece(s) Procedures 43000 Permanent import Relevant time 9/18/2000 Procedure RMIMP0 Import Processing Local currency UNI Universal Currency Doc. currency UNI Universal Currency Purch. organization 1000 IDES Deutschland What types of import duties are required?

_______________________________

_______________________________

_______________________________

_______________________________ Which authorities and documents are relevant for the import process?

_______________________________

_______________________________

_______________________________

_______________________________

(C) SAP AG LO640 4-20

Import Basis Module - Solutions

Unit: Import Basis Module

1 Creating new commodity codes

Create new commodity codes and import code numbers for Germany. What length has been predefined in the system for the commodity codes and import code numbers for Germany? In Customizing, select: Sales and Distribution → Foreign Trade → Basic Data for Foreign Trade → Length of Commodity Code/Import Code Number Length of the commodity code for Germany: 08 Length of the import code number for Germany: 11 Create a new commodity code (824010##) for Germany with a supplementary unit of Gram Gold and the description “Commodity code for group ##”. In Customizing, select: Sales and Distribution → Foreign Trade/Customs → Basic Data for Foreign Trade → Define Commodity Codes / Import Code Numbers by Country Note: You can also process commodity codes and import code numbers directly from the General Foreign Trade Processing Cockpit (Environment → Code number). Use the following values to create a new entry. Country DE Germany Comm./imp. code no. 824010## Description Commodity code for group ## Supplementary unit GAU Gram Gold Addit. information 2

(C) SAP AG LO640 4-21

Create a new import code number (854020010##) for Germany with the description Import code number for group ##. In Customizing, select: Sales and Distribution → Foreign Trade/Customs → Basic Data for Foreign Trade → Define Commodity Codes / Import Code Numbers by Country Use the following values to create a new entry. Country DE Germany Comm./imp. code no. 854020010## Description Import code number for group ## Supplementary unit Addit. information 1 Create a new code number (864020020##) that can be used for both importing to and exporting from Germany. Use “Code number for group ##” as the description. In Customizing, select: Sales and Distribution → Foreign Trade/Customs → Basic Data for Foreign Trade → Define Commodity Codes / Import Code Numbers by Country

Use the following values to create a new entry. Country DE Germany Comm./imp. code no. 854020020## Description Code number for group ## Supplementary unit Addit. information (BLANK)

(C) SAP AG LO640 4-22

2 Finding code numbers You can use the information search for commodity codes and import code numbers to assign tariffs to new materials. Use the supplementary unit (special unit of measure) Gram Gold as the search criteria to find commodity code 824010## for Germany. Which chapter and section is this commodity code assigned to? In the Foreign Trade Cockpit, select: Data Service → Information → Commodity code

Enter GAU in the Special unit of measure field. In the Text select. section, enter GROUP ##.

The program then returns the search results: Chapter: 82 Tools, Cutting tools and silverware made of base metals; their parts, made of base metals Section: XV Base metals and their products Run a search for all import code numbers that contain the string group ## in the description. In the Foreign Trade Cockpit, select: Data service → Information → Code no.

In the Text select. section, enter GROUP ##.

The program then returns the search results: Code numbers: 854020010## 854020020## Why does the system display two import code numbers? Reason: The information function found codes for Germany with the

value 1 or BLANK in the additional info field.

(C) SAP AG LO640 4-23

3 Data for the import process You want to do your co-workers in the German purchasing department a favor by providing them with all the data necessary to simulate an import. Which code for Customs quota has been maintained for material DPC1000_AS with the import code number 85402003010? In Customizing, select: Sales and Distribution → Foreign Trade/Customs → Specific Data for Import → Maintain Code Determination for Customs Quotas Code for customs quota: 8888 1,000,000 pieces from January 1, 2000 to December 31, 2002 Which Anti-dumping code has been maintained for material DPC1000_AS with the import code 85402003010? In Customizing, select: Sales and Distribution → Foreign Trade/Customs → Specific Data for Import → Define Code Determination for Anti-Dumping Anti-dumping code: 8057 8540 2003 010 per piece

(C) SAP AG LO640 4-24

4 Import simulation As a purchaser, you need to determine the duties to be paid for importing material DPC1000_AS and the import documents that are necessary. In the Foreign Trade Cockpit, select: Data service → Description/Information → Import simulation. Then enter the following selection criteria: Release 4.6B: From the Foreign Trade Cockpit, select Data Service → Import simulation)

What types of import duties are required? After you execute this program, the following results are displayed: Customs quota Customs duties determined by the system: 3,264.00 UNI

Anti-dumping Customs duties determined by the system: 19,584.00 UNI Which authorities and documents are relevant for the import process? After you execute this program, the following results are displayed: Verification type EG Import license exists Authority – Importing Ctry TECH_IN Supervisory office for techn. goods - DE Auth. – Ctry of dispatch HITECH_01 Supervisory office for techn. goods - USA


SAP AG 1999

Data Service

l List of foreign-trade objects

l Uploading customs data from a data provider

l Distributing customs data

l System settings

Contents:


SAP AG 1999

Data Service: Unit Objectives

l Recognize what kinds of customs data can be uploaded into your system using the data service

l Upload customs data from a data provider into yoursystem

l Distribute customs data in your systeminfrastructure



SAP AG 1999

Data Service: Overview Diagram

Introduction

Basic Data



Legal Control




Import Basis Module


SAP AG 1999

Cockpit: Data Service

General Processing inForeign Trade




Data Service

Legal Control

Periodic DeclarationsImport customs data

Foreign Trade Cockpit: Data Service

Distribute customs data

Display IDoc / Search /Statistics / Lists

Use the wizard to make settings fordata service and distribution scenario

IDoc

The Data Service Cockpit allows you to: n Use the wizard to make settings for your data service and distribution scenarios quickly and easily n Select specific customs data from a worklist, check it for consistency and then transfer it to the

corresponding foreign-trade tables n Select customs data from the current system, automatically create 1 - n IDocs and then distribute

them to another SAP System n Display IDocs in lists according to relevant criteria such as creation date or logical output type n Search through IDocs for business contents and then display the search results in a list n Create statistics for IDocs and then incorporate them into graphics n Create or change customs duty rates and condition records for customs data manually in the system n Go to detailed descriptions of customs data


SAP AG 1999

Basic Foreign-Trade Data

Customs office

Mode of transport

Procedure / Customs status

Business transaction type

Commodity code

Import code number

Customs tariff section

Customs tariff section / unit

PRODCOM number

CAS number for pharmaceutical products

Mode of transport/customs office combination

Conversion: old/new

Conversion: from/to

Keyword information

Basic foreign-trade data The basic foreign-trade data is the basis for flawless customs processing that conforms to legal

requirements. Complete and comprehensive data maintenance is essential. The system can determine data automatically and suggest it as a default. This data is taken from various documents such as the purchase order, goods-receipt document, outbound delivery or billing document.


SAP AG 1999

Basic Customs Data

Customs quota code

Customs quota number

Quota determination

Customs ceiling number

Pharmaceutical product code

Determination of pharmaceutical products

Anti-dumping code

Anti-dumping determination

Preference import code

Country groups for import processing

Assignment of country groups for import processing

Type of preference document

Type of verification document

Preliminary document

Type of goods identity seal

Package type

Type of means of transport

Basic customs data: Customs basic data is mainly used for import and export. Based on this data, you can calculate customs duties or carry out customs declarations. Definition tables for the individual objects and corresponding determination tables are available in the

system.


SAP AG 1999

Customs Duty Rates

Percentage Quantity WeightQuota X X X

Customs ceiling X X X

Customs exemption X

Pharmaceutical products X X X

Preferential customs duty X X X

Third-country duty X X X

Anti-dumping X X X

Customs records: Customs duties are incurred when materials are imported from a third country. Normally, this includes

duties that can be charged according to quantity, value or weight. The system contains standard customs condition types for quotas, customs ceilings, customs

exemptions, pharmaceutical products, preference, third country and anti-dumping. Most of the condition records for these condition types can be maintained according to quantity, value

or weight. Part of the condition types is already in pricing procedure RMIMP01 and allows you to use pricing to

calculate the customs duty for a certain import process. Note: If you upload customs duty rates automatically, the system recognizes overlapping validity times and

uses pricing rules to resolve the conflicting times.


SAP AG 1999

Process Overview

Notify bye-mail

Upload data

Select

Update

Upload foreign-trade data into the system

Upload foreign-trade data into the system Consistency

checks

•• Data providersData providers

•• AuthoritiesAuthorities

•• ......

IDoc

......

BasicBasic foreignforeign--tradetrade datadata

BasicBasic customscustoms datadata

Customs duty ratesCustoms duty rates

WebXML

ASCII

Export ManagerImport ManagerExport ManagerImport Manager

Technical perspectiveTechnical perspectiveUser's perspectiveUser's perspective

Process overview for uploading customs data: The uploading process is performed in the following steps: n A data provider or authority normally makes customs data available to you at regular intervals.

This data must be in syntactically correct IDoc format. n Following inbound processing of the IDoc, the data can be processed further either automatically in

the background or in the foreground, depending on the system settings. n For foreground processing in dialog mode, the person responsible receives an e-mail message

(optional) informing him or her that this IDoc has arrived. n This person can now select the corresponding IDocs and then choose the foreign-trade data that he

or she finds relevant from a worklist. After checking this data, this person can transfer it into the system.

n If the system discovers inconsistent data, it either creates an error message or rejects the inbound IDoc.


SAP AG 1999

IDocs

IDoc FTDABA01

......

Basic foreign-trade data

IDoc FTDACU01

......

Basic customs data

IDoc COND_A

......

Customs duty rates

Customs officeMode of transportProcedure / Customs status...

Customs quota codeCustoms quota numberQuota determination...

QuotaCustoms ceilingCustoms exemption...

The following IDocs are used in practice: n FTDABA01 for basic foreign-trade data n FTDACU01 for customs data n COND_A for customs duty rates

(C) SAP AG LO640 5-10

SAP AG 1999

Inbound Processing - Foreground

IDoc 02451IDoc 02452

IDoc 02453

Data providersData providers

AuthoritiesAuthorities

......Post

SAP System

SAP

Customs office

Import code numberBusinesstransaction type

n A data provider or authority normally makes customs data available to you at regular intervals. This data must be in syntactically correct IDoc format (FTDABA01, FTDACU01, COND_A).

n If the customs data is to be processed in the foreground, a dialog-oriented processing function appears once the IDoc has been processed initially. If the foreground processing option was chosen, the system automatically creates a worklist from the IDoc that was received.

n For foreground processing in dialog mode, the person responsible receives an e-mail message (optional) informing him or her that this IDoc has arrived.

n Now, this person can use the Import customs objects function in the Data Service Cockpit to select the corresponding IDocs.

n He or she can use drag-and-drop to select the relevant foreign-trade data from the worklist. This data can also be checked for consistency before being transferred to the corresponding Customizing tables or master data tables.

n If the system discovers data inconsistencies, it creates an error log. Note: The system prevents you from entering information that does not belong in your system (information

that refers to a country that is not included in the country table, for example).

(C) SAP AG LO640 5-11

SAP AG 1999

Inbound Processing - Background


IDoc 02453

Data providersData providers

AuthoritiesAuthorities

......

Direct posting

SAP System

SAP

n A data provider or authority normally makes customs data available to you at regular intervals. This data must be in syntactically correct IDoc format (FTDABA01, FTDACU01, COND_A).

n After initial inbound processing, the data is transferred directly into the corresponding Customizing tables or master data tables.

n If the system discovers data inconsistencies, the IDoc is rejected and given an "error" status. n Once corrections are made, the IDoc can be returned to the initial inbound processing stage, if

necessary.

(C) SAP AG LO640 5-12

SAP AG 1999

Distribute Customs Data

SAP Central customs server

SAP - Operative system_03




IDoc 01453

ALE

Direct posting

Customs office

Import code number

Businesstransaction type

Distribute customs data In a distributed system infrastructure that separates operative systems from the central system, it is

necessary to use the ALE distribution model to distribute the customs data. The Distribute cust. objects function is available for this purpose in the Data Service Cockpit. This

function allows you to select specific basic data and customs data for a particular country and several languages.

Finally, 1 – n IDocs are created that provide the operative systems with information based on the ALE distribution model. Inbound processing can then be carried out in the operative systems either in the foreground or in the background, as described above.

Note: A distributed scenario has the advantage that the data only needs to be maintained centrally and the

operative systems always contain data that is up-to-date.

(C) SAP AG LO640 5-13

SAP AG 1999

Data Service in Foreign Trade: Summary

l Wizards help you set up data services anddistribution scenarios.

l You can upload basic foreign-trade data, customsdata and customs duty rates into the correspondingsystem tables.

l The system allows you to transfer specific basic foreign-trade data and customs data.

l All customs data can also be uploaded intoCustomizing tables and master data tables using background processing.

l The ALE distribution model is used for distributing customs data.


SAP AG 1999


l Communication

n IDoc import - purchase order

n IDoc export - billing document

n Automated Export System (AES) - USA

n Application scenario

l Printing

n Export documents

n Output control

n Printing transactions


SAP AG 1999

Communication / Printing: Unit Objectives

At the conclusion of this unit, you should be able to:

l Determine which settings should be made in the system

l Describe how to create IDocsl Name the application scenarios in which you

could use these IDocsl Describe how to print export documentsl Use the user enhancement V55ECTRL


SAP AG 1999

Communication / Printing: Overview Diagram

Introduction

Basic Data



Legal Control




Import Basis Module


SAP AG 1999

Communication - Future Procedure

SD

Billingdocument

SAP System

USA

AES

Europe

DE-ATLAS

Japan

Order

Outbound delivery

Goods issue

MM

Invoice

SAP System

USA

ACE

Europe

DE-ATLAS

Japan

Purchase order

Inbound delivery

Goods receipt

Broker

In-house development

Software

ExportCustoms CustomsImport

Import data becomes export data

Export data becomes import data

TEDI TEDI

n The aim is to achieve uninterrupted communication, so that your export data immediately becomes import data for your subsidiary, for example. The different types of documents and the maintenance effort associated with these are not necessary.

n In addition to internal company communication, you can also communicate with other business-sector partners involved in customs, such as customs authorities, customs brokers, vendors, customers or other authorities.

n The authorities of different countries and economic zones are currently attempting to develop standardized systems for sending foreign trade data from one business-sector partner to another electronically. Examples of these standardized systems include ACE and AES in the USA, ATLAS in the European Union and TEDI in Japan.

n The basic principles for conversion of foreign trade data in the SAP System are outlined in the corresponding conversion tables and in Customizing.

n IDocs (Intermediate Documents) are the basis for data exchange.


SAP AG 1999

Basic Data

l Basis: UN/EDIFACT - Message types

n CUSDEC Customs Declaration Message

n CUSRES Customs Response Message

l Using ISO (International Standards Organization) codes

l SAP EDI Basis: Component WF-IDOC-EDI menu (below)

n Determine IDocs EXPINV02 and IMPINV01

n Define partners

n Define ports

l Output control

n We have chosen the internationally recognized UN/EDIFACT standard as the basis for Printing / Communication. The most important message types in foreign trade are CUSDEC (Customs Declaration Message) and CUSRES (Customs Response Message).

n All future electronic foreign trade/customs systems or those currently being developed use these standard messages. These include: � USA ACE - Automated Commercial Environment � Germany ATLAS - Automated tariff and local customs processing system � Austria EDV/ZOLL (Data processing/customs) � Holland SAGITTA2000 � France DOUANE2000 � Japan TEDI


SAP AG 1999

Output Control / EDI

SAP Sub-system

SAPScriptMedium

1/2

Print/fax

Sub-systemMedium

8

Special function

EDI

6

EDI

EDI

3311 22

n Using output control, you can decide on the type of output and also on what type of communication should be used: � Printing export documents within the SAP System � Printing export documents externally from the SAP System in another system � Sending an EDI message within the company or to the authorities

n In all three cases, you must activate output control. n EDI tools are used for the last two communication types. You can make the final settings for these

two communication types in the EDI section.


SAP AG 1999

EDISubsystemSAPScript

11 3322

Import IDoc

Import IDoc

Partner data

Item dataFT data (header)

IMPINV01

...

E1EDP01E1EDK29

E1EDKA1

...

...

...E1EDP28

...FT data(item)

Purchase order

Inbound delivery

Goods receipt

Invoice

Import dataImport data

HeaderHeader

ItemItem

ItemItem

Vendor 1080

• 010 DPC1000

• 020 P-402

Output control

EDI/ALE

Customizing

n The IMPINV01 import IDoc for import data can be set up using output control in the purchase order. The corresponding settings must also be made in the EDI area.

n Particular attention should be paid to the partner- and port definitions . n The system includes example message type ACE1. n The import IDoc IMPINV01 contains order data and the corresponding foreign trade data at header

and item level. n The import IDoc serves as a basis for EDIFACT-supported paperless customs processing .


SAP AG 1999

Export IDoc

Export IDocEXPINV04

Partner data

Item dataFT data (hdr)

...

E1EDP01E1EDK29

E1EDKA1

...

...

...E1EDP28

...FT data(item)

EDISubsystemSAPScript11 3322

Output control

EDI/ALE

Customizing

Export dataExport data

ItemItem

ItemItem

Customer 1450

• 010 DPC1000

• 020 P-402

Order

Goods issue

Billingdocument

HeaderHeader Outbound delivery

n Export IDoc EXPINV02/-03/-04 is set up using output determination in the customer billing document.

n Pay attention here to the settings to be used in the EDI area. n The export IDoc can be used for three methods : � Printing export documents internally with the SAP System using SAPScript � Connecting to a sub-system to print the export documents � Connecting and sending data by EDI � A combination of several methods, such as printing and EDI, is also possible.

n Export IDoc EXPINV02/-03/-04 contains the billing document data as a primary document and the delivery data as a secondary document. In this IDoc, foreign trade data is set at header and item level.

n The system also creates data regarding assigned financial documents or export licenses.


SAP AG 1999

AES: Automated Export System - USA

EDIFACTEDIFACT converterconverter

ValueValue AddedAdded NetworkNetworkNetwork Network -- ProviderProvider

US Customs

Census Bureau

Export Administration

Defense Trade Controls

Other Federal Agencies

Sales and Distribution

Goods issue

Billingdocument

Order

Outbound delivery

n The AES (Automated Export System) transfers any existing or planned foreign trade data in electronic form to business-sector partners (such as customers, forwarding agents or brokers) and to the customs authorities.

n The official UN/EDIFACT-messages CUSDEC (Customs Declaration) and CUSRES (Customs Response) are used for successful certification by the US customs authorities.

n The AES was developed by US Customs and other American authorities and should improve the export operations and increase the quality of the data that is reported.

(C) SAP AG LO640 6-10

SAP AG 1999

A.E.S.: Options - USA

Option 1

1

Message type:FUSD

Medium:Printing

Dispatch time:Before/at thesame time as thegoods

Shipper's Export Declaration

Option 2 Option 3 Option 4Message type:AES4

Medium: EDI

Dispatch time:maximum 10days after thegoods

Message type:AES3

Medium: EDI

Dispatch time:Part of the databefore the goods;complete declaration max. 5days after thegoods

1 21 2

Message type:AES2

Medium: EDI

Dispatch time:Before thegoods

1 32

EDIEDIEDI EDI

AES (Automated Export System) offers four methods for declaring export processes from the USA. n Option 1: You can file a copy of the Shipper‘s Export Declaration (message type FUSD) at the same

time or before the export. n Option 2: This message is sent via EDI (message type AES2) before the goods are physically

exported. n Option 3: A message with a reduced amount of data is send via EDI before the goods are physically

exported. At the very latest, the complete message is sent five days after the goods are exported. Once again, the message is sent via EDI. Both messages use message type AES3.

n Option 4: This message is sent via EDI a maximum of 10 days after the goods are physically exported. (message type AES4)

Note: You must apply for a special official license in order to use options 3 or 4.

(C) SAP AG LO640 6-11

SAP AG 1999

Application Scenario - Outbound

IDocEXPINV02*

EDIconverter

Businesssector

Scenario recommended for AES

• You can send at three different points in the document chain

• An external converter transfers the data

*) Release 46C: EXPINV04

SAP System document flow

OrderOR

Outbound delivery LF

InvoiceF2

Pro formainvoice F5

Pro formainvoice F8

Within the SD process chain there are three different scenarios: n Scenario 1: The F5 pro forma invoice is based on the SD order. This scenario is only recommended

if there is reliable order data and the settings for foreign trade have been correctly determined. n Scenario 2: The F8 pro forma invoice is based on the SD delivery document and can be created once

all the shipping steps have been completed. The advantage of this scenario is that correct and complete export data is available at the time of processing.

n Scenario 3: You can also use export billing documents (F2) that have already been forwarded to financial accounting as the basis for setting up IDocs. However, there are limitations on which data you can change in billing documents.

(C) SAP AG LO640 6-12

SAP AG 1999

Application Scenario - Inbound

Triggers a workflow in the SAP System

IDoc TXTRAW01

EDIconverter

Scenario 1

Scenario 2

USCustoms

Person responsible isadvised of the process

via e-mail

n The receipt of information from the customs authorities has been implemented in AES in such a way that the standard IDoc TXTRAW01 is also included. This enables you to display the OK (or error) messages from the customs authorities.

n Using standard functions in the EDI area, you can either start a workflow or send information to the person or group of people responsible by e-mail.

(C) SAP AG LO640 6-13

SAP AG 1999

Printing Options

Scheduling

Create billingdocument

..............................

..............................

..............................

. . . . . . . .

. . . . . . . .

. . . . . . . .

..............................

..............................

..............................

. . . . . . . .

. . . . . . . .

. . . . . . . .

..............................

..............................

..............................

. . . . . . . .

. . . . . . . .

. . . . . . . .

..............................

..............................

..............................

. . . . . . . .

. . . . . . . .

. . . . . . . .

..............................

..............................

..............................

. . . . . . . .

. . . . . . . .

. . . . . . . .

..............................

..............................

..............................

. . . . . . . .

. . . . . . . .

. . . . . . . .

..............................

..............................

..............................

. . . . . . . .

. . . . . . . .

. . . . . . . .

Printing transaction

Explicit request(dispatch time 3)

Immediately(dispatch time 4)

With selection run,either next (dispatch time 1)or at time specified (dispatch time 2)

Telex

Printer

You can define the dispatch time when output is to be issued. The following times are available: n The output to be sent is selected by a standard program (RSNAST00) at regular intervals. You can

decide whether the output is selected during the next program run (dispatch time 1) or at a time selected by the user (dispatch time 2).

n There is also a special selection program available for the different applications with which output can be explicitly processed in dialogue or in the background (dispatch time 3). Background processing enables you to process output regularly (see dispatch time 1).

n The output is sent automatically as soon as a document has been posted (dispatch time 4).

(C) SAP AG LO640 6-14

SAP AG 1999

Printing Process

Printing



Outputdetermination

Billingdocument

n Foreign trade has its own print transaction for printing foreign trade documents. n This transaction lists all the documents due to be printed. n There are several different types of printing: � Initial processing � Repeated processing � Error processing � Special case processing

n You can use Foreign Trade: Message Control in Customizing to make settings for the following functions: � Select packing data � Print commodity code � Link the printout of the document to a number range � Make the official document number a required entry � Update the official document number for monitoring purposes � Receive a confirmation prompt before printing

n As of Release 4.6A, it is possible to change data for printing.

(C) SAP AG LO640 6-15

SAP AG 1999

Changes Before Printing

Billing documentPrinting


Billingdocument

Change form fields manually before printing

Change history Update

n As of Release 4.6A, an independent print transaction allows you to change data for printing. Your changes only affect the printout, not the data in the billing document.

n You can use Customizing (Form Data Control / table T609PP) to define for each output type which form fields can be changed in the print transaction.

n In the Foreign Trade: Output Control Customizing activity (table T609P), you can activate the Create audit entry for man. changed form data function. The changes made in the print transaction will then be updated in the change history.

(C) SAP AG LO640 6-16

SAP AG 1999

List of Message Types Delivered for VariousReleases

Rel 4.0 Rel 4.5 Rel 4.6B Rel 4.6CMessage Types (Generic Templates)AUS1 Template - EDI AUS1 Template - EDI AUS1 Template - EDI AUS1 Template - EDIAUS2 Template - Export decl. AUS2 Template - Export decl. AUS2 Template - Export decl. AUS2 Template - Export decl.AUS3 Template - Movem . certif . AUS3 Template - Movem. certif. AUS3 Template - Movem. certif. AUS3 Template - Movem. certif.AUSJ Template - Export rep. JP AUSJ Template - Export rep. JP AUSJ Template - Export rep. JP AUSJ Template - Export rep. JP

Message Types for EU CountriesFECO EU certificate of origin FECO EU certificate of origin FECO EU certificate of origin FECO EU certificate of origin

FEEA EU Export refund FEEA EU Export refund FEEA EU Export refundFEEU EUR1 document FEEU EUR1 document FEEU EUR1 document FEEU EUR1 document EUR1FEEV Simp. export decl. SAD FEEV Simp. export decl. SAD FEEV Simp. export decl. SAD FEEV Simp. export decl. SADFEEX Export declarationSAD FEEX Exportdeclaration SAD FEEX Exportdeclaration SAD FEEX Export declaration SADFET1 Shipping declaration T1 FET1 Shipping declaration T1 FET1 Shipping declaration T1 FET1 Shipping declaration T1FET2 Shipping declaration T2 FET2 Shipping declaration T2 FET2 Shipping declaration T2 FET2 Shipping declaration T2FET5 T5 document FET5 T5 document FET5 T5 document FET5 T5 documentFETR ATR document FETR ATR document FETR ATR document FETR ATR document

FEAG Applic. export licenseFEAN Export license

Message Types for JapanFJCI Export invoice - JP FJCI Export invoice - JP FJCI Export invoice - JP FJCI Export invoice - JPFJCO Cert. of origin Osaka FJCO Cert. of origin Osaka FJCO Cert. of origin Osaka FJCO Cert. of origin OsakaFJCT Cert. of origin Tokyo FJCT Cert. of origin Tokyo FJCT Cert. of origin Tokyo FJCT Cert. of origin TokyoFJEP Export packing list - JP FJEP Exportpacking list- JP FJEP Exportpacking list- JP FJEP Export packing list - JPFJER Export report - Japan FJER Export report - Japan FJER Export report - Japan FJER Export report - Japan

Message types for the USAAES1 Autom. Export System AES1 Autom. Export System AES1 Autom. Export System AES1 Autom. Export System

FUCI Commercial inv. USA FUCI Commercial inv. USA FUCI Commercial inv. USAFUCO U.S. Cert. of origin FUCO U.S. Cert. of origin FUCO U.S. Cert. of originFUEP Exportpacking list FUEP Exportpacking list FUEP Export packing listFUPI Pro formainv. USA FUPI Pro formainv. USA FUPI Pro forma inv. USAFUSD Shipper'sexp. decl. FUSD Shipper'sexp. decl. FUSD Shipper's exp. decl.FUSI Ship. letters instr. FUSI Ship. letters instr. FUSI Ship. letters instr .

(C) SAP AG LO640 6-17

SAP AG 1999

Creating New Documents in the SAP System:Activities

l Copy a sample message type

l Copy a print program

l Modify the new print program

l Copy a SAPScript form

l Modify the new form

n All of the export data contained in the system is available in the RVADAUS1 program in the standard system. If other data is required, you can enhance the EXPINV02 IDoc by adding the necessary fields.

n You can tailor the IDOC_OUTPUT_INVOIC function module to match your needs with a user enhancement. This function module populates the EXPINV02 IDoc with document data.

(C) SAP AG LO640 6-18

SAP AG 1999

User Enhancement V55ECTRL

l Field control according to user specifications

l Redetermination of all data for:

n Single Administrative Documents

n Movement certificate EUR1

n ATR

n EC certificate of origin

n NAFTA documents

l Incompleteness check (DOCUMENT_INCOMPLETEparameter)

l Modification of packing information related to the givendocument

n You can tailor the IDOC_OUTPUT_INVOIC function module to meet your needs with a user enhancement. This function module populates the EXPINV02 IDoc with document data.

n In this function module, you can control whether certain additional information from the delivery such as packing data needs to be read.

n As of Release 4.5A, you can use the T609P control table to set up printing of packing data from the foreign trade documents in the standard system.

n There are more user enhancements for SAP extension V55ECTRL in the printing programs. These make it possible for you to change the data right in the foreign trade documents.

(C) SAP AG LO640 6-19

SAP AG 1999

Communication / Printing: Summary

l Output control is used to determine thecommunication type.

l The IDoc for the import purchase order is thefirst module in the electronic customs process.

l The export billing document IDoc can be usedto print documents relevant for export, to send via EDI, and as a data basis for supporting partner systems.

(C) SAP AG LO640 6-20

Communication / Printing - Exercises


• Export and Import IDocs • Printing export documents and using output control:

You are responsible for foreign trade in your company and must ensure that the relevant export documents for billing are correctly printed or created for EDI messages.

SAP AG 1999

PlantPlant

CustomerCustomer

Customs

Customs

11 Export declaration

Exercises - Communication / Printing

(C) SAP AG LO640 6-21

1 EDI Partner settings Display the partner profile for vendor 1080 with partner type LI. You can find the Partner Profile section under Foreign Trade/Customs in the menu (Tools → Business Communication → IDoc Basis → IDoc).

Outbound parameters: Message type _____________________ Receiver port _____________________ IDoc basic type _____________________

Message control: Application _____________________ Message type _____________________ Partner function _____________________

2 Communication EDI: Display IDoc You want to see the structure of the Import Basis IDoc. What are the first three fields for the General foreign trade data at item level (segment E1EDP28)? For this exercise, go to the IDoc documentation section of the Communication / Printing cockpit (which you can reach via the Initial Screen Foreign Trade/Customs).

Field name: _____________________ Field name: _____________________ Field name: _____________________

(C) SAP AG LO640 6-22

3 Creating an IDoc on the basis of a purchase order Order 10 pieces of material MHA_## from vendor 1080. You want to send an EDI message to this vendor. Describe how you performed this step. ______________________________________ ______________________________________ ______________________________________ ______________________________________ Note: When you create the purchase order, the system notifies you that the import item data is incomplete. Why? Maintain the missing data. Check the contents of the following fields in the IDoc you just created. For this exercise, go to the Communication/EDI section (IDoc subsection) of the Communication / Printing cockpit (which you can reach via the Initial Screen Foreign Trade/Customs). Customs office ________________________ Currency of statistical value ________________________ Description of trading country ________________________ You can create an EDI message for exports in the same way as you would for imports. This EDI message is created to support the new EDI processes, such as the American AES - Automated Export System.

(C) SAP AG LO640 6-23

4 Creating an IDoc on the basis of an SD billing document Display your billing document from exercise 8 in the Documents in Foreign Trade unit. What messages are proposed automatically? Message type ________________________ Standard message type ________________________ Medium for transmission ________________________ You want to view all IDocs of type EXPINV that were created last month. Describe how you performed this step. ______________________________________

______________________________________

5 Printing an export declaration FEEX Create an export declaration on the basis of the billing document from exercise 8 in the Documents in Foreign Trade unit. 1. Add message type (output type) FEEX to the billing document. 2. Choose P633 as the logical destination. 3. Save the billing document. Display the export declaration on the screen. For this exercise, select First processing in the Printout section of the Communication / Printing cockpit (which you can reach via the Initial Screen Foreign Trade/Customs).

(C) SAP AG LO640 6-24

6 Changing the data that is to be printed in an export declaration (FEEX) Before you created the export declaration in exercise 5, the system informed you that the transportation data had changed. Your goods are now scheduled for transport on a ship with ## as its ID number. Check to make sure that this change on the export declaration is also reflected in the invoice. Then, print the document. After you have printed the document successfully, you want to display the changes that you have made. Describe how you performed this step.

________________________________________________

7 Message control (optional) What is the name of the print program for output type FET1 T1 shipping document? ________________________________________________ What is the name of the SAPScript form for output type FET1 T1 shipping document? ________________________________________________

8 Print control (optional) Your customs office gives you the authorization to assign your own document numbers on your export declarations. You also want to make sure that the system always offers a safety query before it prints export declarations. Describe how you performed this step. ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________

(C) SAP AG LO640 6-25

9 Changing the modifiable fields in the export declaration (optional) In the future, you also want to be able to use the print transaction for foreign trade documents to change field 20 - Delivery conditions in an export declaration before it is printed. Describe how you performed this step. ________________________________________________ ________________________________________________ ________________________________________________

(C) SAP AG LO640 6-26

Communication / Printing - Solutions


1 EDI Partner settings Logistics → Sales and Distribution → Foreign Trade/Customs Communication / Printing → Environment → IDOC / EDI basis IDoc → Partner Profile Partner type LI → 1080 Outbound parameters:

Message type IMPINV Import declaration

Receiver port SAPID3 Port for ID3 system

IDoc basic type IMPINV01 Import Basis IDoc (I.B.I.)

Message control:

Application EF Purchase Order

Message type ACE1 New PO printout

Partner function VD Vendor

(C) SAP AG LO640 6-27

2 Communication EDI: Display IDoc Logistics → Sales and Distribution → Foreign Trade/Customs Cockpit - Communication / Printing → IDoc documentation section Select Import IDoc and then choose IDoc documentation. Object name: IMPINV01 IMPINV01 → E1EDP01 → E1EDP28 → Segment fields

Field name: EXNUM

Field name: EXPOS

Field name: STAWN

3 Creating an IDoc on the basis of a purchase order Once you have created the purchase order with the data given, you must use the Goto → Messages to add the message type ACE1. Check the Further data for the message to make sure that the message will be processed as soon as the purchase order is posted: Dispatch time 4 – send immediately (when application is saved) must be selected. After you have posted the purchase order, you can use the following path to display the IDoc of type IMPINV01 type that was created: Logistics → Sales and Distribution → Foreign Trade/Customs Cockpit – Communication / Printing → Communication/EDI section IDoc section → List Selection parameters: Logical message type IMPINV

(C) SAP AG LO640 6-28

You can determine the values in the following segments by double-clicking on your IDoc and then placing the cursor on the following segments in the data records folder: - E1EDK29 - IDOC: Document Header - General Foreign Trade Data - E1EDP28 - IDOC: Document Item - General Foreign Trade Data From segment E1EDK29: – Customs office CUSTOMSA 3816 - Weil am Rhein – Currency of the statistical value GRWC UNI From segment E1EDP28: - Name of the country involved in trade HANLD_TX France

4 Creating an IDoc on the basis of a Sales and Distribution (SD) billing document Logistics → Sales and Distribution → Billing Information system → Billing documents → List Billing Documents (Search term: Payer DEU_XX) Select billing document Goto → Header → Output The system suggests output RD00 – Invoice automatically by default. In order to display all IDocs with the type EXPINV, proceed as follows: Logistics → Sales and Distribution → Foreign Trade/Customs Cockpit – Communication / Printing → Communication/EDI section IDoc section → List Selection parameters: Logical message type EXPINV

(C) SAP AG LO640 6-29

5 Printing an export declaration (FEEX) Logistics → Sales and Distribution → Billing Information system → Billing Documents → List Billing Documents (Search term: Payer DEU_XX) Select billing document Goto → Header → Output - Add output FEEX - Save the billing document Logistics → Sales and Distribution → Foreign Trade/Customs Cockpit Communication / Printing → Printout section Select First processing and then choose Print. A selection screen appears. Select output type FEEX and then choose Print preview.

6 Changing the data that is to be printed in an export declaration (FEEX)

Logistics → Sales and Distribution → Foreign Trade/Customs Cockpit – Communication / Printing → Printout section Select First processing and then choose Print. A selection screen appears. Select output type FEEX and then choose Form data. Select field 18 – Indicator for the means of transport at departure in the hierarchy on the left side of the screen. Then, enter the new data in the dialog box that appears. Then, select Back and choose Print. Finally, confirm that the system should print the data that you have changed in the following dialog box. Displaying print changes Logistics → Sales and Distribution → Foreign Trade/Customs Cockpit Communications / Printing → Printout section Monitoring subsection → Print changes

(C) SAP AG LO640 6-30

7 Output control IMG → Sales and Distribution → Foreign Trade/Customs → Printing/Communication → Assign Forms/Programs for Export Billing Documents The print program for output type FET1 is RVADAUS1 ENTRY_FET1 The SAPScript form for output type FET1 is SD_EXPORT_EUDC

8 Print control

Logistics → Sales and Distribution → Foreign Trade/Customs Cockpit Communication/Printing → Environment section You can use the Print control function to control the printing transaction. Select the output type FEEX and then choose Details. Assign your own document numbers Select the Internal using number range entry in the Document number section and then assign the FT_DRU_AM object in the Number range object field and enter 01 in the Number range number field. Safety query Select the Safety query before starting printing field in the Print transaction – General section.

(C) SAP AG LO640 6-31

9 Changing the modifiable fields in the export declaration IMG → Sales and Distribution → Foreign Trade/Customs → Printing / Communication → Control Foreign Trade Documents → Form Data Control Select the Changeable indicator for element F020 – 20 Delivery condition for output type FEEX.


SAP AG 1999

l Licenses

l UNO embargo

l Sanctioned Party Lists

l Scope and course of checks

l System settings

l Further uses

Contents:

Legal Control


SAP AG 1999

Legal Control: Unit Objectives

l Describe how the system depicts and checks various export regulations in different legal systems at the same time

l List the types of legal controls that the systemsupports

l Create embargoes and sanctioned party lists in the system

l Describe how automatic export-license determination works

l Define the points in the SD document chain at which automatic export control takes place


� Terminology definitions in the SAP System: n Sanctioned party lists are issued by various US authorities. These lists identify individual people or

firms - both American and non-American - with whom, for various reasons, American companies may not trade or can only carry out restricted trading with. The stipulations also apply to subsidiaries of US companies abroad.

n An embargo includes all compulsory state measures relating to a ban on goods trading with a particular state, in order to prevent specific types of trading from taking place.

n In the SAP System, a code of rights is defined as a legal regulation. This regulates the export of goods in a particular country. In Germany's case, this would be the foreign trade law (Außenwirtschaftsgesetz or AWG) and the foreign trade stipulation (Außenwirtschaftsverordnung or AWV) and for the USA, there is the Export Administration Act (EAA) and the Export Administration Regulations (EAR).

n To simplify export control process, articlesthat are to be dealt with and processed in the same way by a given legal regulation are grouped together in the system.

n Every legal requirement produces liststhat include all goods requiring approval. In the lists, every item is assigned an identification number, which is entered into the SAP System as an export control class number. This export control class number corresponds to the export list number (Ausfuhrlistennummer) in Germany, the ECCN in the USA and the Cargo List Number 1 and 2 in Japan.


SAP AG 1999

Legal Control: Overview Diagram

Introduction

Basic Data



Legal Control




Import Basis Module


SAP AG 1999

Foreign Trade Cockpit: Legal Control





Data Service

Legal Control


Simulation

License master

Create and maintain licenses

ü

Cockpit: Legal Control

Monitor master data for materials and customers

Monitor/Release documents thathave been assigned/blocked

Simulate legal control

Create reports for authorities(Germany)

The Legal Control cockpit allows you to: n Create licenses as license master records and assign them to documents n Monitor and release documents n Monitor and maintain data in the material master and the customer master n Simulate business transactions n Create the required declarations as file versions on disk (valid in Germany) The following tools for monitoring are available: n You can see which order items and delivery items have been blocked for further processing due to

legal control. n You can determine which export licenses are assigned to which orders. n You can monitor your export licenses, so that you are aware well in advance which licenses are

about to expire.


SAP AG 1999

Check Times

CheckSimulation

CheckUpdate licenseBlockSimulation

CheckBlockSimulation

Quotation

Order

Outbound delivery

Goods issue

Billingdocument

FI document

2

1

3

Checking procedure and scope: n General control of type of order and type of delivery: � Legal Control: __ - No check � C - Check for dispatch and export

n Detailed control of order- and delivery-item types: � Legal Control: __ - No check � A - Dispatch check � B - Export check � C - Dispatch and export check (incl. domestic) � D - Dispatch and export check (excl. domestic)

n When the checks take place: � 1) Preventative check: Quotation at the time the document was saved � 2) Main check: Order at the point when the document was saved � 3) Emergency check: Delivery during creation, picking (WMS), goods issue � The aim is to determine as early as possible whether export approval is necessary, so that

sufficient lead time remains or the necessary export licenses can be applied for.


SAP AG 1999

Process

Goods issue

Material License master

Order

Document header 1190

- Item 010 DPC1000- Item 020 P-402

Delivery

Material master Customer master

Main checkLegal control

CheckLegal control

n The aim of the legal control is to determine whether the export is generally allowed (embargo, sanctioned party list) and whether any export licenses are necessary (and if so, how many). This determination depends on: � Export's country of departure � Goods to be exported � Export's country of destination � Customers � Export date

n In the event that a business transaction requires a license, the system tries to automatically determine all necessary export licenses and classify the document item.

n The document item can be processed further if this classification is successful. Otherwise, it will be blocked.

n The deciding partner for the check is the ship-to party, whose homeland determines the country of destination for the export.

n The crucial date for the check is the requested delivery date in the sales order (as of 4.6C, this is the date of the first confirmed schedule line) and the goods-issue date in the delivery.


SAP AG 1999

Legal Control: Material Master

General foreign trade data

Exemption certificate

Material number P-402Plant 1000

Legal control

ActiveLegalregulations Grouping

X

X

ABC

4A003. . .1A1340

Group_1. . .Group_3

Exp.contr.class

n Data relevant for legal control can be stored in the material master. n By maintaining the exemption certificate data, you indicate to the system that the material you are

currently processing is not subject to legal controls. In other words, no export license is assigned. Specifically, you must maintain the code, number and validity date for the exemption certificate.

n The country in which the delivering plant is located dictates the active legal controls that are to be checked for exports from this plant.

n For each material and each legal control, you can store the corresponding: � Export control class � Grouping

n By definition, every material is subject to legal control. For exceptionally well-maintained legal regulations, it is possible to negate this assumption. In other words, you can declare that materials are not subject to legal control unless they are specifically indicated as such, by using the Individual maintenance indicator.

n You can start a standard report, which examines the master material data and determines whether the following data has been maintained. A cross-plant check is also possible.


SAP AG 1999

Countries Involved

SwedenSweden

Country of departure Country of destination

MyanmarMyanmar

n Countries involved: � The country where the delivering plant is located defines the legal regulations that are to be used. � The country of the goods recipient (taken from the document or customer master record) defines

the country of destination for the export process.


SAP AG 1999

License Master

l 4A004l 4D003l ...

l 1190 AGl JFT-MX WRl ... RE

Partnersl US - USAl MX - Mexicol ...

l Destination control

l ...

Partners Exp. control class Countries Texts

l Legal regulationsn Legal regulations A

w License type EAG EinzelAusfuhrGenehmigung(Individual exp. license - Germany)

w Company code 1000

l Validity period Jan. 1, 2000 - Dec. 31, 2007

l Business transaction type 11

l Sales document number 1334

l Maximum amount 100,000 UNI

l Status C

License number: 87

n The SAP System can manage various types of export licenses that your company has received for exporting various goods to various different customers. You must create legal controls in the system so that legal control can automatically determine the export licenses.

n An export license is always only valid for one legal regulation and one company code and is classified for one type of license. It is always only valid for a set period of time.

n An export license can be valid for: � A specific transaction type or for all types of transactions � A specific sales document or for all types of sales documents � One, several or all of the countries of destination � One, several or all of the partners (the partner role can also be specified here) � One, several or all of the export control classes

n In the event that the license contains a maximum amount, assigned sales order values can only be updated until this amount is used up. Ultimately, legal control can no longer use this license.

n One export license can have different statuses. Only when it has status C - Active, will the license be taken into consideration by the systems legal control for license determination.

(C) SAP AG LO640 7-10

SAP AG 1999

Sections

Product-specific data

Legal regulations -Types of licenses

A)A)

C)C) B)B)Data specific to the

country of destination

The settings required for legal control are divided into three sections: n Section A contains all settings that must be made due to different legal regulations. n Section B defines data specific to the country of destination, such as special features relating to the

country of destination for the export. n Section C determines the product specific data, such as all data directly relating to the material.

(C) SAP AG LO640 7-11

SAP AG 1999

Section A: Legal Regulations

Customizing

Scope of checkScope of check

Define License TypesDefine License Types

A

A

A

BB

AG

SAG

EAG

VLIVL

Allgemeine Genehmigung(General license)Sammelausfuhrgenehmigung(Collective export license)Einzelausfuhrgenehmigung(Individual export license)Validated LicenseIndividual Validated License

DescriptionLicense typeLegal reg.

Define Legal RegulationsDefine Legal Regulations

X

XX

X

XX

ActiveLegal reg.Dep. country

DEDEDEUS

ABCB

CustomizingLegal RegulationsLegal Regulations

DescriptionLegal reg.

ABC

German foreign-trade regulationsExport Administration Regulations (EAR)US re-export

License master

Customizing

Customizing

Section A is divided into three subsections: n Define all basic legal regulations that should be recognized in the system. A basic legal regulation

represents the corresponding export law of a particular country. n You must activate the legal regulation so that the system knows which legal regulations need to be

inspected for exports from the different countries of departure. n The system carries out a complete legal control for exports from this country for each active legal

regulation. If the check is not successful for even one legal regulation, the document item is blocked. n Each legal regulation recognizes different types of export licenses, which have various attributes. For

example, there are export licenses that are only valid up to a certain amount, while others are only valid for particular customers or export control classes, and so on. You can define the various different types of licenses which may be used in your firm here.

n The settings that you make here control the license master record, and also the scope of check of the legal controls in SD documents.

(C) SAP AG LO640 7-12

SAP AG 1999

Section B: Country-specific Data (1)

Control Situation per Country of DestinationControl Situation per Country of Destination

Valid untilDest. ctry

FRIRIR

Embargo

Dec. 31, 1999Dec. 31, 1999Dec. 31, 1999

XX

Customizing

CustomizingProduct Classification by Destination CountryProduct Classification by Destination Country

Dest. ctry Legal reg. Grouping Valid until Seq. no. License type User exit

FRFR

AA

Group_1Group_1

Dec. 31, 1999 12

AGSAG

000002

Section B is also divided into three subsections: n First, the general export control situation of the country of destination for an export process should

be determined. In the event that a country is subject to a UN embargo, this must be taken into account here. The SAP System blocks exports to countries that have been identified as embargo countries.

n Then, product classification is carried out. A license type is to be stored depending on: � Country of destination � Legal regulation that is to be checked � Grouping used in the material master record for the goods that are to be exported � Validity period During the legal control, the system determines the type of export license that was assigned here and

looks for an appropriate license of that type in the license master. n It is possible to classify a combination of country of destination, legal regulation, grouping and

validity date into more than one license type, resulting in a cascade. In this case, the system then takes the first license type and tries to find a suitable license. If there are no licenses of that type available in the system, it tries to find a license for the second license type, and so on.

(C) SAP AG LO640 7-13

SAP AG 1999

Section B: Country-specific Data (2)

Control Situation of Destination CountryControl Situation of Destination Country

Valid untilDest. ctry

FRIRIR

Embargo

Dec. 31, 1999Dec. 31, 1999Dec. 31, 1999

XX

Customizing

CustomizingProduct Classification by Destination CountryProduct Classification by Destination Country

Dest. ctry Legal reg. Grouping Valid until Seq. no. License type User exit

FRFR

AA

Group_1Group_1

Dec. 31, 1999 12

AGSAG

000002

n Finally, you can classify the destination countries: n Every legal requirement divides countries according to different Country lists or Country groups.

Belonging to a particular country group means that there may be additional requirements and editions to be taken into account when exporting goods.

n Both in the product and country groups, a user exit is stored for each entry which can be used, if necessary, for further checks using the standard.

n All the Customizing entries in section B are linked to the date, and are therefore only valid for a particular period of time. Therefore those stipulations and requirements of the legal control which may change over time may be taken into account, as the system always uses the entry which has a date that corresponds to the export date.

(C) SAP AG LO640 7-14

SAP AG 1999

Section C: Product-specific Data

CustomizingDefine GroupingsDefine Groupings

Grouping

AABB

Description

Group_1Group_2Group_oneGroup_three

ComputerSoftwareHardwareSoftware

Assign Export Control Classes to GroupingsAssign Export Control Classes to Groupings

Customizing

Customizing

Material master

Export Control ClassExport Control ClassExp.contr. classLegal reg.

AABB

Description

4A0034D0039B01A9B012A

Digital computerTest software. . . . . .

Exp.contr. classLegal reg.

AAAABBB

Default4A0034A0034D003. . .9B001A9B001A. . .

GroupingGroup_1Group_4Group_2. . . Group_fiveGroup_nine. . .

XX

XX

Section C consists of three subsections: n First, define the export control classes that are relevant for your materials. For example, in Germany,

the listed goods from the International List (Ausfuhrliste) are to be stored with their International List numbers (Ausfuhrlistennummer); in the USA, the ECC Numbers must be indicated and in Japan the coding from Cargo List 1 and Cargo List 2 must be given.

n Determine the groupings required. You can choose any groupings you like. The groupings have two different functions: � They should summarize the different export control classes, which are to be treated identically by

export law. The subsequent determination of export licenses has two levels. The first level is based on the grouping and the second on the export control class. � Groupings should also make it possible to differentiate between two materials that have the same

export control class but should be processed differently, according to export law. n Finally, determine the permitted combinations of export control classes and groupings. The

combination, which is marked as a default, will be copied automatically during maintenance of the material master record as soon as the export control class has been entered.

(C) SAP AG LO640 7-15

SAP AG 1999

The Check Process in Documents

License masterResult

RegulationsRegulationsContentsContents

Section A

Material

Section B

Section C

OriginOrigin

Country of the plant of

departure

License type

positive

Result

negative

Country of theship-to party

Checkagainst:

Valid license(s)Log

Set blockLog

n The automatic determination of export licenses takes place in two stages: � In the first stage, a suitable type of export license is determined for each legal regulation that is to

be checked using: Departure country Goods to be exported Country of destination Entries in sections A, B and C � The grouping is particularly relevant here.

n The type of license the system found also determines the scope of the checks that are carried out in the second stage of license assignment.

n In the second stage, the system looks for a license of the type which was found to be required in stage 1 and also satisfies all of the other check criteria.

n If the result of the check is positive, the licenses that were determined are assigned to the order item and the item can be processed further.

n If the result of the check is negative, the order item is blocked to prevent further processing. This block is made by setting the system status FTC5 at item level.

n You can simulate legal control at any point during document processing.

(C) SAP AG LO640 7-16

SAP AG 1999

Simulation

Simulationfrom document

processing

Simulationindependent of

sales documents

Input screen:Customer

Material

Regulations

Origin

Business tr. type

. . .

Customer 1450

Item:MaterialRegulationsOriginBusiness trans. type

DPC1000IQFR11

l Boycott list

l Embargo

l Check active legalregulations

l License assignment

l Total result

Log

Purchasing docs

n You can call up legal control in the simulation mode at any point during order and delivery processing.

n It is also possible to let the legal control run in simulation mode independently from document processing , in order to establish, for example, whether an export license would be necessary.

n In each case, a legal control log is produced, which details the checks carried out by the system. This enables you to see at any time how the system came to this result.

(C) SAP AG LO640 7-17

SAP AG 1999

Embargo

Germany

Iraq

n In the event that UNO imposes an embargo on a country, you can reflect this situation in the system. n The system blocks exports to countries that have been identified as embargo countries. n This embargo check is part of the general legal control. n Additionally, you can determine at any time independent of the document processing, whether an

embargo has been imposed on a country. n The following partners in the document or their countries are checked for embargoes: � Sold-to party Partner function SP � Ship-to party Partner function SH � Bill-to party Partner function BP � Payer Partner function PY � Ultimate consignee Partner function EU

(C) SAP AG LO640 7-18

SAP AG 1999

Sanctioned Party Lists

Germany

USA

Customer XYHamburg

Customer YZMunich

Denied persons list. . . Mr. NO TokyoMr. XY HamburgMr. YZ Munich. . .. . .

n Different US authorities issue sanctioned party lists, which identify individual people and firms, with whom American firms may not trade or may only trade on a limited basis.

(C) SAP AG LO640 7-19

SAP AG 1999

Customer Master: Sanctioned Party Lists

Customer 1090

US X 010301 010101 010101

Country TDO Date SDN Date List Date

n In the customer master, you can see whether one of your customers is identified for a particular country on one of the following sanctioned party lists: � Denied Party List / Table of Denial Orders (DPL/TDO), � Specially Designated Nationals (SDN) � Internal list

The customer master also indicates when the last check on the current list was carried out. n Although this check on the sanctioned party lists has little to do with individual legal controls, it is

part of the general legal control. If a partner assigned to a document item is on a sanctioned party list, the item is blocked for further processing.

n The check on the sanctioned party lists also takes place in the order and delivery documents if legal control is not active. In the order, the system issues a warning if a partner fails to pass the check; in the delivery, an error message appears.

n The customer, ship-to-party, bill-to-party, payer and ultimate consignee partner-functions are subjected to the sanctioned party lists check. The actual check is carried out regardless of the country for which the partner is appears on the list. This check is also independent of the origin of the goods delivered.

n You can see at any time whether one of your customers is on the sanctioned party lists.

(C) SAP AG LO640 7-20

SAP AG 1999

Further Uses

Legal regulationsLegal regulations

GG

BT

PV

EVIC. . .

Description

Betäubungsmittelgesetz(Anesthetics regulations)Passive Veredelung(Outward processing)EVECertificate. . .

Customizing

n Legal control is a tool for the administration of licenses and similar documents for export control. n For this reason this tool can also be used for other controls, such as: � Chemical controls for anaesthetic law � Administration of PVcertificates for outbound processing � Administration and control of end use statements � Maintenance of biodiversity laws (law preventing extinction of species) � ...

(C) SAP AG LO640 7-21

SAP AG 1999

Legal Control: Summary (1)

l You can depict and check various export regulationsin different legal systems and their respective export licenses in the system.

l You can also reflect embargoes and sanctioned party lists in the system.

l A document item can only be further processed when all checks have been successfully completed.

(C) SAP AG LO640 7-22

SAP AG 1999

Legal Control: Summary (2)

l Legal control is carried out automatically as you save the Sales and Distribution (SD) document.

l You can regulate legal control at the following levels:

n Document type

n Item category

n Country of departure

n Material

n Legal regulations

n Combination of country of destination with the above criteria

(C) SAP AG LO640 7-23

Legal Control - Exercises

Legal Control

In this unit, we will demonstrate the legal control process in the system: – Classification of a material master – Simulation of a business transaction – Creating an export license – Activating an export license – Administration of export licenses – Legal control in the SD order – Sales orders and monitoring assigned export licenses – UN embargo – Sanctioned party lists

You are responsible for export control in your company, and your duties include processing goods requiring export licenses.

SAP AG 1999

CustomerCustomer

PlantPlant

CustomerCustomer

Customs

Export license

• Classifying material masters• Administration of export licenses• Simulation of business transactions• UN embargos• Sanctioned party lists

• Classifying material masters• Administration of export licenses• Simulation of business transactions• UN embargos• Sanctioned party lists

Export licenseEG-VO 86

Exercises - Unit 6 - Legal Control

(C) SAP AG LO640 7-24

Note: The system is configured use legal regulation A to check documents in these exercises.

1 Classification of the material master The material masters you created in the Basic Data unit must now be classified correctly. Make sure that material MHA_## is not relevant for legal control and the production material MFE_## is a listed material with export control class 4A00_## (in accordance with the German foreign trade regulations). Enter the necessary data so that above situation is reflected in the system. To do this, go to the Controlling section of the Legal Control cockpit, select Material master and then choose your material. From the consistency report, select Material master to access the desired master record. What grouping does the system propose when maintaining the export control class for material MFE_##? ________________________________________________ What alternative groupings would also be possible? ________________________________________________ ________________________________________________ Maintain the material with the group that the system proposes.

(C) SAP AG LO640 7-25

2 Simulation of a business transaction One of your American customers (Search term PUMP—this customer already exists in the system) would like to place an order for 10 pieces of your material MFE_##. To create an export license (should it prove necessary), you want to check the export control status independently of the business transaction. To do this, go to the Simulation section of the Legal Control cockpit, select Legal Control and then enter the following data: Plant 1000 Partner (Search term PUMP) Material MFE_## Value 1,000.00 Currency USD Export date (today’s date) Bus. transaction type Final Purchase / Sale What is the result of the legal control? ________________________________________________ If an export license is necessary, what type of license does the system require? ________________________________________________

(C) SAP AG LO640 7-26

3 Creating an export license You apply to the export authorities for a suitable license for the business transaction above. To do this, go to the Licenses section of the Legal Control cockpit and enter the following criteria: Legal regulations A License type (see previous task) Button: Maintain master record On the detail screen, enter the following data: Company code 1000 Country of destin. US BusTransactType Final Purchase/Sale Export control class 4A00_## Customer (Search term PUMP) Make sure that this license will not yet be used by the legal control function of the system. Which fields are required-entry fields? ________________________________________________ How can you influence which fields become required-entry fields and what are the effects of this? ________________________________________________ ________________________________________________ Save the license.

(C) SAP AG LO640 7-27

4 Activating an export license The export authorities have approved the license for your company. The number of the license the authorities have given you is License_##. You also receive the following information: Valid from (today’s date) Valid until (today’s date + 2 months) Approved value 100,000.00 Currency UNI Now you want to make the license you created available in the system for legal control. Which field in the license master now needs to be changed and to what value? ________________________________________________ Change the license master accordingly and enter the new information. (Legal Control cockpit, Licenses section, Maintain master record button) Save your changes and simulate the business transaction again.

(C) SAP AG LO640 7-28

5 Administration of export licenses (optional) You want an overview of all export licenses according to German foreign trade regulations that are valid for export control class 4A00_##. To do this, go to the Alert reporting section of the Legal Control cockpit, select Licenses and then use the above criteria to run a search.

6 Legal control in the SD order The customer (above) orders 10 pieces each of materials MHA_## and MFE_##. Create an order and call up the log for legal control. What do you notice? ________________________________________________ ________________________________________________ ________________________________________________ Save the order. Can you deliver this order? ________________________________________________ ________________________________________________

(C) SAP AG LO640 7-29

7 SD order and assigned export licenses (optional) Display the assignments of SD orders to licenses in the Alert reporting section and then go to the license that is assigned to your order. What do you notice? ________________________________________________

_____________________________________________

8 Embargo (optional) Your customer (search term EMBARGO) orders 100 pieces of material MHA_##. Create an order and save the document. What do you notice? ________________________________________________ ________________________________________________

9 Sanctioned Party Lists (optional) Your customer (search term SLS) orders 10 pieces of material MFE_##. Create an order. What do you notice? ________________________________________________ ________________________________________________ Save the document. What do you notice? ________________________________________________ ________________________________________________

(C) SAP AG LO640 7-30

Legal Control - Solutions

Legal Control

Classification of the material master

From the consistency report, select Material master to access the desired master record. For material MHA_##: Maintain the exemption certificate data in the Legal control section: ExemptionCertificate B Exemption cert. no. 1 Iss.date of ex.cert. (today’s date) For material MFE_##: Select the Legal control button and choose Export control class 4A00_## for legal regulation A. If you do not maintain a grouping, the system enters the default grouping (G3). Alternatively, grouping G1 is also permitted.

(C) SAP AG LO640 7-31

2 Business transaction simulation Legal Control cockpit → Simulation section → Legal Control Enter the following data: Exporter plant 1000 Ship-to party 1190 Material number MFE_## Value 1,000.00 Currency USD Export date (today’s date) Bus. transaction type 11 Simulation results: Negative; an export license is necessary. Export license type: SAG

3 Creating an export license

Legal control cockpit, Licenses section Legal reg. A Type SAG Button: Maintain master record Leave the status of the license set to created so that the system does not use it yet. Required entry fields include: BusTransactType You can use Customizing for Foreign Trade to control which fields are required entry fields in the license master: Sales and Distribution → Foreign Trade/Customs → Legal Control → Define Types of License Masters You can control which fields are required-entry fields by maintaining the data in the Attributes section of the details screen of the license type. In other words, these settings define: - Layout of the license master - Scope of the checks during license determination

(C) SAP AG LO640 7-32

4 Activating a license Legal Control cockpit → Licenses section → Maintain master record Use the license status field to activate the export license by setting the status to C – Application accepted, license active.

5 Administration of export licenses Legal Control cockpit → Alert reporting section → Licenses Use legal regulations A and export control class 4A00_## for the selection criteria.

6 Legal control in the SD order General Foreign Trade Processing cockpit, Documents section, Order → Create doc. (Release 46B: Logistics → Sales and Distribution → Sales → Order → Create) Create a standard order for sales organization 1000, distribution channel 10 and division 00. You can use Extras → Export license → Log to call up a log for legal control. Result: Indicator is green; the export is authorized. The order can be delivered.

7 SD order and assigned export licenses (optional) Legal Control cockpit → Alert reporting section → Licenses or Assigned docs The order value of the license is changed by the value of the order item.

(C) SAP AG LO640 7-33

8 Embargo Cockpit: General Foreign Trade Processing; section: Documents. Select Order → Create doc. (Release 4.6B: Logistics → Sales and Distribution → Sales → Order → Create) Create a standard order for sales organization 1000, distribution channel 10 and division 00. Enter the data and post the document. Result: - The system issues a log for legal control: An embargo has been imposed on the country of destination - System status FTC5 is set at item level - Item cannot be delivered

9 Sanctioned party lists

General Foreign Trade Processing cockpit → Documents section → Order → Create doc. (Release 46B: Logistics → Sales and Distribution → Sales → Order → Create) Create a standard order for sales organization 1000, distribution channel 10 and division 00. Enter the data and post the document. Result: - The system issues a warning: The sold-to party is on a boycott list - The system issues a log for legal control: The sold-to party is on a boycott list - System status FTC5 is set at item level - Item cannot be delivered


SAP AG 1999


l Payment guarantee management overview

l Financial documents (letter of credit)

l Controlling customer master and document type

l Integration in the document chain

l Scope and course of checks in the order and delivery

l Updating financial documents

l Monitoring

Contents:


SAP AG 1999

Documentary Payments: Unit Objectives

l Explain how financial documents are integrated intologistics payment guarantee management

l Maintain various financial documents

l Monitor financial documents

l Maintain all data necessary for documentary payments and make all corresponding settings



SAP AG 1999

Documentary Payments: Overview Diagram

Introduction

Basic Data



Legal Control




Import Basis Module


SAP AG 1999

Types of Payment Guarantee / Integration

FI-OPEN

Time

Types of Payment Guarantee / Integration

Political risks

Economic risks

Credit Collection(bills ofexchange)

Letter ofcredit

Export credit insurance

Credit management


Payment card

High risk Low risk

n The aim of such a payment guarantee is to achieve a far-reaching reduction in risks for receivables due from customers.

n In addition to using credit management, there are several different forms of guarantee in the business processes, such as financial documents (letters of credit, collections), export credit insurance (external interface) and payment cards.

n These various forms differ from each other in their degree of security, their validity period, and their associated requirements for vendors and customers and are integrated for guarantee purposes into the Risk management instrument.

n Generally, on the first level, you would try to use a corresponding form of guarantee (financial document - letter of credit) to achieve optimum risk minimization.

n If this is not possible, risk minimization can be achieved in the second step by using credit management to set up a credit framework.

n Note: The use of a corresponding form of guarantee strongly depends on the form of business. Therefore, financial documents are mainly used for high-volume foreign trade transactions, whereas the use of payment cards, for example, is of greater importance for trade.


SAP AG 1999

Letter of Credit - Process

Goods flow

Documents/Values flow

5

9

6

4

10

2

3

8

Opening bank

Advising bank

1Importer Exporter

7

A possible business process with documentary payments can be illustrated as follows: 1. A purchase contract is created. Importer and exporter exchange purchase order information and order

confirmation information. These documents contain the conditions for the sale of the goods. 2. In accordance with the exporter's conditions, the importer opens a letter of credit at the bank of his or

her choice. The exporter's order confirmation is the basis for the letter of credit. 3. After approval of the credit inquiry, the opening bank can contact a branch or subsidiary, the

advising bank, in the exporter's country, to set up a letter of credit commissioned by the importer for the exporter.

4.-5. The exporter recognizes the importer's ability to pay on receiving the letter of credit and delivers the goods in accordance with the conditions agreed upon in the letter of credit.

6. 7. The exporter receives the shipping documents and presents them, along with the valid letter of credit, to the advising bank. The bank checks the documents for deviations and pays the exporter the agreed amount.

8. The documents are forwarded to the opening bank in exchange for the payment. 9. The opening bank demands payment from the importer according to the set conditions. The importer

receives the shipping documents in exchange for the payment. 10. The importer can only take possession of the goods when he or she receives the shipping

documents.


SAP AG 1999

Foreign Trade Cockpit: Documentary Payments

General Foreign TradeData




Data Service

Legal Control


Simulation

Financialdocument

Customer master

Create and maintain financial documents

Cockpit: Documentary Payments

ü

Monitor customer master data:• Risk management• Credit management

Simulate documentary payments

Bank master data

Monitor/Release documents thathave been assigned/blocked

The Documentary Payments Cockpit allows you to: n Create financial documents and assign documents n Monitor and release documents n Maintain bank/customer master data n Simulate business transactions with documentary payments The following tools for monitoring are available: n You can determine which sales and delivery documents are blocked for further processing. You can

use this function to release or reject blocked documents. There is a wide range of information functions that provide information necessary for this decision.

n You can determine which financial documents are assigned to which sales, delivery and billing documents.

n You can monitor your financial documents to find out which ones are about to expire, or for which ones the value that has been used has already reached a specific percentage, and so on.


SAP AG 1999

Integration into SD Processes, Control

Master record -Financial document

Order

Outbound delivery

Billing document

FI document

Customizing

l Updatel Block

Customizing

Scope ofcheck

CustomizingPayment guarantee procedure:Type of payment guarantee- Letter of credit- Payment card

CustomizingKey:

Payerand

document type

Check and update

Assignment

n The system sets up a payment guarantee procedure from the payer's customer master record and

the type of sales document. This procedure controls what type of guarantee is necessary for this business transaction.

n If you put the financial document in the sales document at header level, it is valid for the whole document; if you enter it at item level, it covers the corresponding item.

n In the delivery, the financial document can only be maintained in the document header. If you have already entered it into the sales order, it will be copied into the delivery.

n In the billing document, the financial document can also be seen in the document header. However, it can no longer be maintained there; it must be copied from previous documents.

n The financial document number is one of the split criteria when deliveries are created. In other words, two orders with different financial documents or an order with different financial documents for each item cannot be delivered together. The financial document is one of the split criteria when the billing document is created. In other words, two documents with different financial documents or an order with different financial documents per item cannot be billed together.

n A business transaction guaranteed by a financial document must begin with a sales document, which is a legally binding contract. Document transactions with deliveries without an order (delivery type LO) are not possible.


SAP AG 1999

Documentary Payments - Master Data

Master record - Financial document (FD)

Banks Documents Status Change historyTexts Addresses

Number 6328l Partnersl Validityl Valuesl Terms of paymentl Incotermsl . . .

Details:

Header:

n A financial document in the SAP System is a generic term for documents in the area of documentary payment guarantee. Letters of credit are to be entered into the system as financial documents.

n When you maintain financial documents, different types of financial documents are available: � R - Revocable � U - Irrevocable, unconfirmed (in other words, only the opening bank validates) � C - Irrevocable, confirmed (in other words, the opening and the confirming bank validate) � O - Others

n You are free to define the categories of financial documents, such as: � 01 - Letter of credit � 02 - Guarantees � ...

n The opening bank is displayed on the main screen of the financial document. However, you can assign several banks as banking partners involved with the financial documents. You can also define banks as one-time banks, provided you have defined master records for them.

n On the document screen, you can list the documents that need to be sent to the bank, such as the export billing document, packing list, or certificate of origin, for example.

n If the name and/or the address of one of the parties named in the letter of credit deviates from the master data, you should enter the names/addresses exactly as they appear in the letter of credit on the address screen of the financial document. Otherwise, the addresses are taken from the master data.


SAP AG 1999

Customizing - Basic Settings

Customizing: Define Financial Documents (FD)

ABO...

Advising bankConfirming bankOpening bank. . .

Bank Functions

Bank Indicators

1

2

...

Banks for confirmed letters of credit

Banks for unconfirmed letters ofcredit

. . .

Financial Doc. Type

0104...

Letter of creditGuarantee. . .

123...

Export billing documentExport packing listCertificate of origin. . .

Documents to be Presented

Indicators for Financial Documents

Field selection

01 Letter of credit

Cust. / Vend.

Financial doc. value

XX22

XX11

. . .

Hide/show field

......

Optional/required entry field

......

n Make the following settings in Foreign Trade Customizing in the basic settings area: n Define the types of financial documents used in your company. n Define the different functions banks can assume within the framework of a document transaction,

such as: � A - Notifying bank � B - Confirming bank � O - Opening bank � N - Negotiating bank � ...

n Define the possible documents to be presented, which you later wish to assign to a financial document.

n Define indicators for financial documents. These indicators have two functions: � They govern field control of the financial document master, which means that you can display or

hide individual fields or make entry mandatory. � You can also control which fields the system checks when you assign a financial document to an

SD document in the SD document flow. n Define the bank indicator for financial documents. You can use this indicator later to group

together different bank functions for one type of financial document.

(C) SAP AG LO640 8-10

SAP AG 1999

Financial Document Customizing - Relationships(1)

CustomizingAssign Documents to Financial Document Indicator

01 Letter of credit 1 Export billing doc. 1

Orig. Copies

01 Letter of credit 2 Export packing list 101 Letter of credit 3 Certificate of origin 1. . . . . . ... . . . ...

213...

Customizing Customizing

Indicators for Financial Documents

01 Letter of credit

Documents to be Presented

02 Collection

123...

Export billing documentExport packing listCertificate of origin. . .. . . . . .

DocumentsIndicators

n When creating a financial document, the system can propose documents that should be available later when submitting a letter of credit to the bank.

n Of course the documents can also be entered as you maintain the financial documents. However, should a packing list and a certificate of origin always be required for a specific letter of credit, then the system can automatically take these facts into consideration.

n You can assign a financial document indicator to the documents to be presented, which the system can then automatically propose when creating such financial documents.

(C) SAP AG LO640 8-11

SAP AG 1999


Customizing

Control: Banks in Financial Doc.

111

ABO

... ...

CustomizingCustomizing

ABO...

Advising bankConfirming bankOpening bank. . .

Bank FunctionsBank Indicators

1 Banks for confirmed letters of credit2 Banks for unconfirmed letters of

credit... . . .

n You can tell the difference between a confirmed or unconfirmed letter of credit by the banks involved or the functions the banks assume.

n By maintaining the Specify Control of Banks in Financial Document activity, you can ensure that an unconfirmed letter of credit is not assigned to any banks with the function confirming bank , for example.

n You can assign the permissible functions that different banks in a financial document can assume to a bank indicator.

n Note: The number of banks that can be assigned to a financial document is technically unlimited but for business reasons it is kept to a maximum of 10.

(C) SAP AG LO640 8-12

SAP AG 1999


Customizing

Customizing

Customizing

Customizing

Indicators01 Letter of credit

Bank Indicators

Fin. Doc. Control

01 C 01 1

R RevocableU Irrevocable unconfirmedC Irrevocable confirmedO Others

02 Collection1 Banks for confirmed letters of credit

2 Banks for unconfirmed letters ofcredit...

Financial document category

. . . . . .

Customizing

Financial Doc. Type0104. . .


The central control object for the maintenance of financial documents is the Financial Document Control:

n Here you can assign a financial document indicator and a bank indicator to a combination of types and categories of financial documents.

n The assigned financial document indicator controls the maintenance of the financial document master record, whose field control and data must be checked when assigned to an SD document.

n The assigned bank indicator defines the possible functions that the different banks within the financial documents can assume.

n When you create a financial document, you must always specify the type and category of that financial document.

(C) SAP AG LO640 8-13

SAP AG 1999

Customizing - Risk Management for SD

Customizing

Customizing

Customizing

Forms of Payment Guarantee

01 Confirmed irrevocable letter of credit

02 Confirmed revocable letter of credit

03 Payment card

. . . . . .

Financial Doc. Type

0104. . .



01 Confirmed irrevocable letter of credit

PymtGuarCat:

FD Cat:FD Type:

Customizing

R RevocableIrrevocable unconfirmed

C Irrevocable confirmedO Others

Financial document category

U

0 Financial document

C Irrevocable confirmed01 Letter of credit

A form of payment guarantee defines how a document item is guaranteed: n When maintaining the forms of payment guarantee you must give the category of guarantee: � 0 - Financial document � 1 - Export credit insurance (external link) � 2 - Export credit insurance with financial document (ext. link) � 3 - Payment card � 4 - Other payment guarantees (user exit)

n If you define a form of payment guarantee for financial documents, you can specify the financial document's type and category, which the system would then request if this form of payment guarantee were used for the document item. You can therefore not only establish that a financial document has been requested, but also that a confirmed or unconfirmed letter of credit must be assigned.

(C) SAP AG LO640 8-14

SAP AG 1999

Customizing - Risk Management for Fin. DocsDetermining the Form of Payment Guarantee

Customizing

Payment guarantee procedure 0001

20

30

40

10 Confirmed letter of credit

Unconfirmed letter of credit

Payment card

. . .


Determination of payment guarantee procedures using combinations of:

- Document payment guarantee procedure for the sales document type

- Customer payment guarantee procedure for the payer

n Due to the possible existence of different simultaneously active forms of payment guarantee, a priority regulation is required, which controls which risk-guarantee options come into play.

n This control is carried out via the payment guarantee procedure , which creates a prioritized list. The system then attempts to provide the sales order items with a form of guarantee, based on the order of the list.

n Determination of the payment guarantee procedure and the relevant forms of guarantee is carried out using a customer procedure set up in the payer master record and a document payment guarantee procedure, which is assigned to the corresponding sales document type.

n No determination logic is set up for the financial documents. You can assign them manually in the sales and distribution document.

(C) SAP AG LO640 8-15

SAP AG 1999

Comparison of Forms of Payment Guarantee

Financial document

Key number determined fromthe sales order

Financial document no.

Limit Financial document limit

Sales order level Header or item

Updating balanceOrder, delivery, billing document values

CheckFinancial document limit against financial document

Payment card

Authorized amount

Card number

Multiple cardsper order

Values from thecurrent document

Authorized value against use ofauthorization

Export credit insurance

Insurance limit

Open ins. valueOpen items

Credit management

Credit account Contract number

Credit limit

Header level Item level

Open credit valueOpen items

Credit limit againstamount of credit used

Insurance limit for insurance utilization

n All of the forms of payment guarantee listed present the option of risk guarantee if required. n Differences exist on the master data side. n For checks against payment cards, financial documents and external export credit insurance, a status

similar to the individual inspections in credit management is maintained, which is included in the creation of the overall status in the document header.

n The release or rejection of blocked documents is generally carried out via the list of blocked sales and distribution documents.

n Updating of insurance accounts and financial document accounts is carried out with credit management via the information structures.

n A basic difference between financial documents and payment cards is that in the payment guarantee procedure, if the form of guarantee is specified as a financial document, a financial document must be assigned to the sales order, otherwise, the document is blocked. On the other hand, for payment cards in the procedure, the sales order will not be blocked, even when no card is entered in the order.

(C) SAP AG LO640 8-16

SAP AG 1999

Entering a Financial Document: Order

Order

Financial doc. no. 123

Total value: 50,000.-

Depreciation %: 70%

Financial doc. value:

Open value:

100,000.-

100,000.-

65,000.-

Financial document 123

(70%) 35,000.-

Credit limit:

Total liabilities:

80,000.-

10,000.-25,000.-

Credit management

(30%) 15,000.-

n In the sales order, you can enter a financial document number (letter of credit number) at header or item level, as long as this form of payment is permitted by the customer.

n Generally the financial document covers the full amount of the sales order. However, in exceptional cases you might agree that only some of the amount should be covered by the assigned financial document.

n In such a case, only that amount is deducted from the financial document value. n For example, you can make an agreement for a sales order that 70% of the total value should be

covered via the financial document and that the remaining 30% should be processed using credit management.

n Note: In order for a financial document assigned in the sales order to be accepted, some of the data in the sales order must correspond with that of the financial document. The data that should be checked in the system is specified in Customizing in the activity for maintenance of financial document indicators.

n Note: If the results of this check are negative, the system can block further processing of the document or the document item.

(C) SAP AG LO640 8-17

SAP AG 1999

Updating Document Values

Prerequisite:Confirmed amount

available

Prerequisite:Document hasnot yet been forwarded to FI

++

--

++

Info structure S131

Order Delivery Billing document

Sales order value

Update Group 12

--

++Value of delivery goods

Billing document value

n The order value is updated on the basis of the confirmed order amounts (Confirmed order amounts * credit price = order value).

n The system uses the pricing procedure and subtotal A to determine that the invoice sum total (net value + possible tax) is the credit price.

n The update group 15 is for business transactions in which the financial document is not assigned until the delivery, rather than at the time of the order.

n The system only uses update group 18 when no deliveries are carried out (when an invoice is created for the order, for example).

(C) SAP AG LO640 8-18

SAP AG 1999

Documentary Payments: Simulation

l Assignment

l Check results

Log

Simulationfrom document

processing

Customer 1450

Item:MaterialValueIncoterm. . .

DPC1000640,000.-DAF. . .

Sales documents

Simulationindependent of

sales documents

Input screen:Customer

Material

Value

Incoterm

Paymt guarantee procedure

Financial document

(C) SAP AG LO640 8-19

SAP AG 1999

Documentary Payments: Summary (1)

l You can illustrate various financial document typesand categories in the system.

l Different forms of payment guarantee dictate howthe system responds.

l Financial documents can be assigned to sales anddistribution documents at header level and to sales documents at item level.

l Various checks are run during the assignment process. If these checks produce negative results, the document may be blocked for further processing.

(C) SAP AG LO640 8-20

SAP AG 1999

Documentary Payments: Summary (2)

l Blocked documents can then be either released or rejected using the release transaction in credit management.

l Diverse monitoring functions allow you to manageyour financial documents effectively.

(C) SAP AG LO640 8-21

Documentary Payments - Exercises


This unit demonstrates documentary payments: – Overview for payment guarantee management – Integration of financial documents in the document chain – Creating a financial document – Activating a financial document – Administration of financial documents – Assigning and checking in the SD order – SD document and assigned financial documents – Blocked documents

Your company has several customers for whom you want to use financial documents (especially letters of credit) to guarantee business transactions.

1 Determining a payment guarantee determination procedure In order to minimize risk as far as possible, you must ensure that goods are only delivered to a customer if that customer has opened a letter of credit for you. What parameters does the system use to automatically determine the payment guarantee procedure and the form of payment guarantee? Make the proper settings in Customizing. ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________

(C) SAP AG LO640 8-22

2 Maintaining the customer master Change the master data for your customer so that a financial document must always be entered in the order as a payment guarantee. What information do you have to assign to your customer? ________________________________________________ ________________________________________________ ________________________________________________

3 Creating a financial document As requested, your bank provides an irrevocable, confirmed letter of credit. Create this letter of credit in the system: To do this, go to the Maintain financial documents section of the Documentary Payments cockpit and enter the following criteria: Financial doc. cat. C – Irrevocable confirmed Financial doc. type 01 – Letter of credit Button: Maintain financial document On the detail screen, enter the following data: Company code 1000 Customer DEU_## Ship-to party DEU_## Bank country DO – Dominican Republic Bank key 045601100222 - Dominican National Bank Ext. FD number LoC_135/2001_## Financial doc. value 200,000.- UNI Payment terms ZB01 Opening date (today’s date) Latest shipping date (today’s date + 3 months) Validity end date (today’s date + 5 months) Incoterms DAF Saarbrücken Which documents does the system propose automatically? ________________________________________________ ________________________________________________ ________________________________________________ Where are settings for these defaults made?

(C) SAP AG LO640 8-23

________________________________________________ ________________________________________________ Can you also enter additional documents? ________________________________________________ ________________________________________________ Where is this configured? ________________________________________________ ________________________________________________ Save the financial document. If the incompleteness log appears during saving, enter the missing data. How can you control the incompleteness log for the financial documents? ________________________________________________ What status does the system set automatically when you save? ________________________________________________ Financial document number: ________________________________________________

(C) SAP AG LO640 8-24

4 Simulation of a business transaction You want to check whether the financial document can now be used to guarantee an order. The best way to do this is to simulate the business transaction. Enter the following data: Sold-to party DEU_## Ship-to party DEU_## Payment terms ZB01 Plant 1000 Material DPC1000 Value 50000 USD Requested deliv. date (today’s date + 1 month) Incoterms DAF Saarbrücken Payment guarant. proc. 000001 Financial doc. no. (see exercise 3 in this unit) What are the results of the check? ________________________________________________ Why? ________________________________________________

(C) SAP AG LO640 8-25

5 Activating a financial document Your bank, the Deutsche Bank in Hamburg, confirms the letter of credit from your customer and charges a fee of 1 % of the value of the letter of credit. Maintain this in the system and set the financial document to active (in other words, set its status to D - Document exists and can be used). As you maintain the financial document, you can assign additional banks to the letter of credit and enter the bank charges on the Banks tab. Country DE Bank key 20050000 - Deutsche Bank Hamburg What other bank functions could you use in this financial document? ________________________________________________ ________________________________________________ ________________________________________________ Where can you make the proper settings for these? ________________________________________________ ________________________________________________ ________________________________________________ Save your changes and run the simulation function again. What do you notice? ________________________________________________ ________________________________________________

(C) SAP AG LO640 8-26

6 Creating an order that is guaranteed by a financial document Your customer DEU_## orders 4,000 pieces of material MHA_## in the sales area (1000/10/00). First make sure that you have enough stock on hand. Find out which payment guarantee procedure was determined by the system. ________________________________________________ Assign the financial document that you created in task 3 of this unit to the order and save the document. How does the system respond? ________________________________________________ ________________________________________________ Document number: ________________________________________________ Deliver the order. How does the system respond? ________________________________________________

7 Maintaining a financial document Because the value of the financial document is not sufficient to fully guarantee the customer order, you request an increase in the financial document value. Your bank advises and confirms an amendment to your letter of credit, in which the letter of credit value is increased by 500,000 UNI to 700,000 UNI. Maintain your financial document accordingly by changing the status to E – Change in document has been submitted and increasing the financial document value to 700,000 UNI. Can you reset the status of the financial document to D? ________________________________________________ What must you do so that the financial document status can be reset to D? ________________________________________________ Make sure that your financial document can be used again.

(C) SAP AG LO640 8-27

8 Blocked documents Display all sales documents in the system that are blocked due to your letter of credit. Initiate another check for your order. How does the system respond? ________________________________________________ ________________________________________________ What actions does the system trigger? ________________________________________________ ________________________________________________

9 Assignment of financial documents to sales documents (optional) Display all documents that are guaranteed for payment by your financial document. List these documents. ________________________________________________ Branch from this list directly to the display of the financial documents. What is the open value of the financial document? ________________________________________________

10 Administration of financial documents (optional) The Dominican National Bank has declared bankruptcy. Display all unconfirmed letters of credit that you have in your system from this bank for your company code 1000. List these letters of credit. ________________________________________________ ________________________________________________ ________________________________________________

(C) SAP AG LO640 8-28

Documentary Payments- Solutions

Unit: Documentary Payments

1 Determining a payment guarantee procedure

Automatic determination of payment guarantee procedures is controlled by two parameters in the Documentary Payments section of the Implementation Guide (IMG): Sales and Distribution → Foreign Trade/Customs→ Documentary Payments → Risk Management for Financial Documents → Define and Assign Payment Guarantee Schemas The two parameters are - Customer determination schema - Document determination schema First, define customer determination schemas and document determination schemas. In this case, use customer determination schema 0001 – Finance documents and document determination schema 01 – Standard. Then, assign the document determination schema 01 to order type OR – Standard order. Now, you must define which payment guarantee procedure should be determined for a certain combination of customer determination schema and document determination schema. Here, the system determines payment guarantee procedure 000001 – Letter of credit for the combination of customer determination schema 0001 and document determination schema 01. If a standard order is now created for a customer who has customer determination schema 0001 in their customer master, the system determines payment guarantee procedure 000001.

2 Maintaining the customer master Documentary Payments cockpit → Controlling section → Customer master Enter your customer DEU_##. Also enter the following information: Sales organization 1000 Distribution channel 10

(C) SAP AG LO640 8-29

Division 00 Assign the customer determination schema 001 (use the Paym.guar.proc. field) on the Billing document tab in the Delivery and payment terms section.

(C) SAP AG LO640 8-30

3 Creating a financial document Documentary Payments cockpit → Maintain financial documents section Financial doc. category C – Irrevocable confirmed Financial doc. type 01 – Letter of credit Button: Maintain financial documents Enter the required data. The system uses the following documents as defaults - Export billing document (1 original, 2 copies) - Export packing list (1 original, 1 copy) - Certificate of origin (1 original, 3 copies) You can set these defaults in Customizing for foreign trade in the Documentary Payments section: Sales and Distribution → Foreign Trade/Customs → Documentary Payments → Relationships → Assign Documents to Financial Document Indicator Assign the above three documents to financial document indicator 01. You can use the Specify Financial Document Control Customizing activity to link financial document indicator 01 with financial document category C and financial document type 01, both of which you entered during financial document maintenance. You can also assign other documents to the financial document indicator. You can define this option for open entry of documents in Customizing for foreign trade in the Documentary Payments section: Sales and Distribution → Foreign Trade/Customs → Documentary Payments → Basic Settings → Define Indicators for Financial Documents You can allow more documents to be maintained for the financial document indicator 01 – Letter of credit by activating in the Free entry of docs possible field, which can be found in the Documents section of the screen. You can use the Specify Financial Document Control Customizing activity to link financial document indicator 01 with financial document category C and financial document type 01, both of which you entered during financial document maintenance. You can maintain the log of incomplete items for financial documents in Customizing for foreign trade in the Documentary Payments section. Sales and Distribution → Foreign Trade/Customs → Documentary Payments → Basic Settings → Define Indicators for Financial Documents You can use the Checks column to control which fields should be included in the incompleteness checks. You can also control whether an incomplete financial

(C) SAP AG LO640 8-31

document should be activated (whether the document can be set to status D – Document is available and can be used) in the Incompletion/Changes section of this screen. When a financial document is saved, the system automatically sets the status to A – Document has been created. The system only accepts documents with status D for payment guarantees.

4 Simulation of a business transaction Documentary Payments cockpit, Simulation section Enter the necessary data. Result: The result is negative because the financial document has status A – Document has been created. The system only accepts documents with status D for payment guarantees.

(C) SAP AG LO640 8-32

5 Activating a financial document Documentary Payments cockpit → Maintain financial documents section → Maintain financial documents In addition to the confirming bank, the following bank functions are also available: - Advising bank - Negotiating bank - Opening bank Bank controls are in Customizing for foreign trade in the Documentary Payments section: Sales and Distribution → Foreign Trade/Customs → Documentary Payments → Relationships → Specify Control of Banks in Financial Document Assign the above four bank functions to bank indicator 1. You can use the Specify Financial Document Control Customizing activity to link bank indicator 1 with financial document category C and financial document type 01, both of which you entered during financial document maintenance. Use the Status function to set the financial document status to D – Document is available and can be used, which activates the financial document.

(C) SAP AG LO640 8-33

6 Creating an order that is guaranteed by a financial document

Select Order → Create doc. in the Documents section of the General Foreign Trade Processing cockpit. (Release 4.6B: Logistics → Sales and Distribution → Sales → Order → Create) Create a standard order for sales organization 1000, distribution channel 10 and division 00. Enter the relevant data. Select Goto → Header → Billing. You can find the payment guarantee procedure that the system determined in the Risk management section of the screen. Result: The system determined payment guarantee procedure 000001 – Letters of credit. You can enter your financial document in this section of the screen in order to guarantee payment for the document. When you save the document, the system issues a warning that the value of the letter of credit is not sufficient to guarantee the order. It is not possible to deliver this order because it is blocked due to the financial document check: “Order for delivery is blocked because of credit checks”.

7 Maintaining financial documents Documentary Payments cockpit → Maintain financial documents section → Maintain financial documents In order to be able to change the financial document value, you must first use the Status function to change the status of the financial document to E – Change in document has been submitted. Then, the system requests the reason for this change. Select Amendment. You can only change the value of the financial document after you have made this entry. It is not possible to set the status of the financial document back to D – Document is available and can be used immediately because of the change history. If you want to change the status back to D, you must first save the financial document with status E – Change in document has been submitted and then return to the maintenance screen and change the status to D – Document is available and can be used.

(C) SAP AG LO640 8-34

8 Blocked documents Documentary Payments cockpit → Monitoring section → Blocked documents Select your sales document from this list and then choose Check. Result: The system checks the current financial-document data against the data in this document. Since the financial document is now sufficient to guarantee payment for the order, two actions are triggered: - The system lifts the credit block in the document (which means the document can be delivered) - The document value is copied into the LIS structure S131 as the order value used

9 Assignment of financial documents to sales documents Documentary Payments cockpit → Monitoring section → Assigned documents The open value of the financial document is reduced by the document value of the assigned order.

10 Administration of financial documents Documentary Payments cockpit → Monitoring section → Financial docs Enter the following data: Company code 1000 Financial doc. cat. U Bank key 045601100222 Bank country DO – Dominican Republic Execute the function.


SAP AG 1999


l European Union

l NAFTA / USA

l EFTA / Switzerland

l Asia and Japan

Contents:


SAP AG 1999

Periodic Declarations: Unit Objectives

l Use the system to create the different declarations

l Maintain the basic data for these declarations

l Use the control mechanisms in the system



SAP AG 1999

Periodic Declarations: Overview Diagram

Introduction

Basic Data



Legal Control




Import Basis Module


SAP AG 1999


INTRASTATINTRASTATEXTRASTATEXTRASTAT

KOBRAKOBRAOil declarationOil declaration

EU NAFTAUSA

EFTASWITZERLAND

JAPANMITI/Customs

SEDSEDAERPAERPHMFHMF

ImportImportExportExport

Simplified Simplified ExportExportControl Control (V.A.R.)(V.A.R.)

n The SAP System supports the automatic creation of various statistical declarations for the above countries and economic zones.

n As of Release 4.6C, you can use the oil indicator for the commodity code to mark products for which an oil declaration is necessary. The periodic declarations section of the Foreign Trade Cockpit assists you in creating oil declarations (necessary in Germany).


SAP AG 1999

Foreign Trade Cockpit: Periodic Declarations





Data Service

Legal Control


Completeness

Customizing

Master data

Cockpit: Periodic Declarations

Wizards

Operative:Creating periodic declarationsIndividual maintenance of INTRASTAT/EXTRASTATOil declaration (Germany)Archiving

Monitoring:Checking master data to makesure it is complete

System-guided user settings:Recommended Customizing settings for periodic declarations

n The Periodic Declarations cockpit includes all necessary system activities for periodic declarations. n You can create periodic declarations in the operations section of the screen. You can create

declarations in three steps, which can also be automated by using variants. If business transactions that cannot be reflected with documents in the system occur in your company, you can use individual maintenance of data records to create declarations. You can also use the individual maintenance function to change existing data records. After periodic declarations have been filed, they can be archived. The system also supports the creation of a goods catalog.

n The monitoring function ensures that all the data necessary for the declarations is maintained in the material master. You can complete master records directly from the monitoring function.

n You must make various Customizing settings so that the system can successfully generate complete declarations. The INTRASTAT/EXTRASTAT wizards provide step-by-step guidance with documentation for each stage of the process.


SAP AG 1999

Periodic Declarations: Process

Creating Periodic Declarations

Select documentdata (intermediatedatabase)

Step 1

Step 2Create a file version

Step 3Create a file version on disk

Option:Execute all steps using variants

Creating periodic declarations involves a three-step procedure: n In the first step, you select the document data that you want to include in the declaration. The data

that you select is stored in an intermediate database that is specifically for this declaration. You can use individual maintenance to change data or add data to the data records in this intermediate database (next page). The incompleteness log and the list of open business transactions (billing documents that have not yet been forwarded to accounting) are interactive options that allow you to reprocess incomplete documents.

n In the second step, the data is used to create a file in a format specific to the country in question. n In the third step, the file version that is to be saved to disk and sent to the authorities is generated.

The processes and selection parameters in these three steps can be saved as variants and then called up again at any time.

The declaration process in Japan differs from the process illustrated here (for more details, refer to the slide at the end of this unit).


SAP AG 1999

Individual Maintenance of INTRASTAT/EXTRASTAT and V.A.R

Report year

2000

2000

2000

2000

2000

Recpt/Disp

1

Number

1

2

2

2

2

3

1

2

3

Report month PlantCompany code

2

2

2

2

2

0001

0001

0001

0001

0001

0001

0001

0001

0001

0001

4500000002

4500000006

90000178

90000196

90000177

2000

02

Report year

Report month

Receipt/dispatch 2

Item data

General data

Control

Document number

n You can include new entries in the intermediate databases for the INTRASTAT/EXTRASTAT and V.A.R declarations if your company has a business transaction that is relevant for one of these declarations, but has no corresponding document in the system.

n Incomplete entries can also be maintained in this way. n In the individual maintenance context, pay special attention to how the Deletion type indicator is set

for the selection programs to ensure that the system does not overwrite data records that you enter manually.

n You can make settings for field control for individual maintenance in the Customizing activity for the log of incomplete items for periodic declarations.


SAP AG 1999

Controlling the Log of Incomplete Items

Business trans. typeSpecial unit of measureCountry of destinationRegion of destinationCustoms office. . .

CharacteristicCheckIncompleteness Aggregation criteria

Message cat.:

Country:

INTRASTAT

DE

E

EEE

Individual maintenance:Field control: Hidden/Optional/Required entry

System message: Error message/Warning/No check

Goods movement direction must be specified in each

case

Details

n The log of incomplete items for periodic declarations lets you monitor and maintain data conveniently. You can process this log online (adding necessary data from the log view). Information about which data is missing is aggregated on various levels. This allows the log to remain transparent even when large volumes of data are involved. It also lets you avoid redundant reprocessing of missing data. You can also maintain and correct Customizing settings right on the log screen. This log should be refreshed before the file version is created (step 2).

n You can use Customizing to control the scope of the log of incomplete items that is created for the corresponding selection report.

n You can also set the data aggregation criteria dynamically for country-specific programs. You should only activate aggregations that affect data other than that in the SAP standard system after you have cleared this activity with the authorities involved.

n The Message cat. field defines the form that is used as a basis: EU: - INTRASTAT VEIAV - EXTRASTAT VEXAV - KOBRA VEKAA, VEKAB, VEKAC NAFTA: - AERP VESED - SED VESED - HMF VESED EFTA: - VAR VEXAV


SAP AG 1999

Periodic Declarations: Document Selection

Purchase order

Inbound delivery

Goods receipt

Vendor'sinvoice

MMselection program

SDselection program

Goods issue

Materials Management Sales and Distribution

Order

Goods issue

Customer'sbilling

document

Outbound delivery

( )

n Data for periodic declarations is selected from documents used in the Materials Management process and the Sales and Distribution process.

n In the Materials Management document chain, both goods receipt and receipt of invoices trigger data selection. The system uses the vendor's invoice as the basis for determining values. If the invoice has not yet been received, the declaration occurs in the following month. If, in the following month, an invoice has still not been received, it is possible to use the values from the purchase order. As of Release 4.6C, you can create a declaration based exclusively on the vendor's invoice. This method is especially advantageous in countries like Italy and France, where tax declarations and statistical declarations are linked (recommended Customizing activity: Data Selection Control/table T609IS). The Materials Management component supports INTRASTAT and EXTRASTAT declarations. In Sales and Distribution, data selection occurs solely on the basis of billing documents. This influences SED, AERP and HMF declarations as well as INTRASTAT, EXTRASTAT, VAR, and KOBRA declarations.

n You can set the country key (numerical or alphanumerical/ISO code) the system should use for the declaration by using the Data Selection Control (table T609IS) activity in Customizing. Note: As of January 1, 2000, you must include the ISO code in INTRASTAT/EXTRASTAT declarations.

n You can use the inclusion and exclusion indicators at header and item level to exclude items or entire documents from the declaration. You can also use activities in Sales and Distribution (SD) Customizing to set exclusion indicators for item categories. As of Release 4.6C, you can use the two user enhancements available in SAP's FTGOVSEL extension to influence data selection and creation of an intermediate database. These two user enhancements replace the six outdated enhancements for periodic declarations.

(C) SAP AG LO640 9-10

SAP AG 1999

European Union (EU)

l INTRASTATl EXTRASTATl KOBRA

INTRASTAT

KOBRA

Oil declaration

EXTRASTAT

n The system supports the creation of the following declarations for the European Union: � INTRASTAT (internal trade statistics), � EXTRASTAT (external trade statistics) and � KOBRA declaration (export control for sensitive goods) � Oil declaration (Germany) as of Release 4.6C

(C) SAP AG LO640 9-11

SAP AG 1999

EU - INTRASTAT


n Within the context of intra-EU trade statistics, all goods movements - receipt and dispatch - that take place between member states of the EU must be reported to the authorities within a given reporting period.

n The European Union has issued general guidelines. n The way you create the declaration depends on the official requirements of the member state. The

options include: � Country-specific declarations on paper � Country-specific data-record structures for creating the declaration on diskette � Country-specific data-record structures for declaration in the EDIFACT format

CUSDEC/INSTAT.

(C) SAP AG LO640 9-12

SAP AG 1999

EU - INTRASTAT: Creating the Declaration

1

Paper version File version File in EDIFACT format

File on diskette

SD selection programMM selection program

2

3

Internet/ E-mail

EDI

Intermediate databaseVEIAV

n The system reads the Materials Management (MM) and Sales and Distribution (SD) document data using selection programs common for all the EU member states.

n The incompleteness log and the list of open business transactions (billing documents that have not yet been forwarded to accounting) are interactive options that allow you to reprocess incomplete documents.

n Depending on the type of log selected in the selection program, the system copies the data from the selected documents into intermediate database VEIAV.

n When legal reporting requirements differ among nations, the system needs to use country-specific programs to create paper and diskette versions of the declaration.

n The paper version of the declaration can be carried out in a single step from the intermediate database VEIAV.

n The system creates the diskette version of the declaration in two stages: First, the file version is created from the intermediate database VEIAV. Second, the file is copied onto diskette in the correct country-specific format.

n The file version in EDIFACT format can be transferred via EDI and saved to disk. As of Release 4.6C, you can also send EDIFACT files as e-mail attachments.

(C) SAP AG LO640 9-13

SAP AG 1999

Oil Declaration (Germany)

1

File version

SD selection programMM selection program

2

3 Paper version

Evaluation report

List (ALV) indeclaration format

Intermediate database VEIAV

n In Germany, the receipt and dispatch of oil and petroleum products must be declared. As of Release 4.6C, the system supports creation of oil declarations.

n The data for this declaration is taken from intermediate database VEIAV, which is created by the selection program for the INTRASTAT declaration.

n The intermediate database is evaluated using a special report for oil declaration. This report uses the oil indicator to select the items that are to be declared. The oil indicator is set in Customizing for the appropriate commodity codes.

n The system creates a list in declaration format that can be printed.

(C) SAP AG LO640 9-14

SAP AG 1999

EU - INTRASTAT: Transmission Media

004

001

Germany

France

Belgium

Denmark

Finland

Greece

Great Britain

Ireland

Italy

Luxembourg

Holland

Sweden

Spain

Austria 038

002

008

009

007

005

003

030

006

032

002

011

Portugal 010

EDI

EDI

EDIInternetEDI

Internet

EDI Internet

EDI

n At least one type of data transmission for declarations to the authorities can be carried out for each country: � Paper version - form � File version - diskette � Creation of a declaration in EDIFACT-format CUSDEC/INSTAT and transmission via EDI � Transmission of the declaration in EDIFACT format as an attachment to an e-mail message via the

Internet. (You can store the authorities' e-mail address using the Data Selection Control activity in Customizing.)

(C) SAP AG LO640 9-15

SAP AG 1999

EU - INTRASTAT: Checklist

l Have all check objects been maintained?

l Has master data been maintained?n Vendor, purchasing information record, material, route, customer

l Have default values been maintained for all combinations?

n Transaction type, export procedure

l Have condition records for condition type GRWR been maintained?

l Have currencies and exchange rates been maintained?

l Have you maintained your own INTRASTAT ID numbers?

n We recommend that you test the functions well before the system reaches the productive stage to make sure that all the necessary settings for master data and Customizing have been made.

n You can use the incompleteness log in the selection reports to assist you in your testing efforts. n You can use the wizard in the Periodic Declarations cockpit to maintain the necessary settings in

Customizing. Make sure to the check the settings for the following objects: � Vendor (including region, VAT registration no.) � Purchasing info record (including import procedure) � Material master (including origin data, goods number, countries, regions) � Route (including mode of transport, customs office) � Customer (including region, VAT registration no.)

n Customizing settings for the region/region of manufacture must also be maintained in some European countries.

n The Periodic Declarations cockpit also allows you to maintain material master data and monitor it to make sure it is complete.

(C) SAP AG LO640 9-16

SAP AG 1999

EU - EXTRASTAT


n As part of the extra-European Union trade statistics, all goods movements - import and export - that take place between an EU member state and a country that is not a member state of the EU must be reported to the authorities within a given reporting period.

(C) SAP AG LO640 9-17

SAP AG 1999

EU - EXTRASTAT: Import / Export

Diskette

Selection program

File version2

1

3

Intermediate databaseVEXAV

n The system supports creation of the EXTRASTAT declaration for exports from Germany and Holland.

n These programs can also serve as a basis for other European countries. n The process is similar to the creation of an INTRASTAT declaration and is carried out in three steps:

Step 1: Non-country-specific selection of the relevant document and updating the selected documents in the intermediate database VEXAV.

Step 2: Creation of a file version from the intermediate database VEXAV Step 3: Copying of the file onto diskette in the correct format for Holland or Germany

n The incompleteness log and the list of open business transactions (billing documents that have not yet been forwarded to accounting) are interactive options that allow you to reprocess incomplete documents.

n The EXTRASTAT data in the intermediate database VEXAV can either be completed later using individual maintenance or new entries can be made.

(C) SAP AG LO640 9-18

SAP AG 1999

KOBRA: Check for Exports from Germany

§12 and §13/6

Commodity codes for sensitive goods

261226172710...

n All sensitive goods that are going to be exported from Germany to non EU member states must be reported within a certain period of time in the form of a KOBRA declaration.

n The goods to be declared are identified according to German law by their commodity code. n The process is similar to the creation of an INTRASTAT declaration and is carried out in three steps:

Step 1: Selection of the relevant export billing documents and updating the selected documents in the intermediate databases VEKAA, VEKAB and VEKAC.

Step 2: The system creates a file version from the intermediate databases VEKAA, VEKAB and VEKAC.

Step 3: The file is copied onto diskette in the correct country-specific format for Germany. n The incompleteness log and the list of open business transactions (billing documents that have not

yet been forwarded to accounting) are interactive options that allow you to reprocess incomplete documents.

(C) SAP AG LO640 9-19

SAP AG 1999

NAFTA - USA

n The authorities within NAFTA also require you to report goods movements for statistical purposes. There are several different types of declarations to the authorities for NAFTA.

(C) SAP AG LO640 9-20

SAP AG 1999

NAFTA - USA

AutomatedExportReportingProcedure

Shipper´sExportDeclaration

HarborMaintenanceFee

VESED int. database

SD billing documents

The system supports the following declarations for the United States: n AERP: Automated Export Reporting Procedure n All exports leaving the USA are reported to the relevant federal authorities on diskette. n SED: Shipper's Export Declaration in list format n All exports leaving the USA are reported to the relevant federal authorities on paper. n HMF: Harbor Maintenance Fee

Fees paid to the authorities when exports leave the country by sea.

(C) SAP AG LO640 9-21

SAP AG 1999

NAFTA - USA

Export into non-EUcountries (third countries)

3

Diskette

File version Paper versionS E D

Paper versionH M F

Selection program

Export billing document

2

1

3

Intermediatedatabase VESED

n Selection of the relevant export billing documents n If data is missing in the documents, the selection program issues an incompleteness log. n Depending on the type of log chosen in the selection program, the system copies the data from the

selected documents in intermediate database VESED. n You can create the SED declaration in list form in a single step from intermediate database VESED. n You can create the HMF declaration in a single step from intermediate database VESED. n The system creates the AERP declaration on diskette in two stages: First, the file version is created

from intermediate database VESED. Then, the file is copied onto diskette. n The incompleteness log and the list of open business transactions (billing documents that have not


(C) SAP AG LO640 9-22

SAP AG 1999

EFTA - Switzerland (1)

Simplified Export Control(V.A.R)

The system supports the creation of the V.A.R (simplified export procedure) declaration for Switzerland.

n All exports leaving Switzerland must be reported to the relevant authorities within a given reporting period.

n The "plants abroad" issue is also taken into consideration.

(C) SAP AG LO640 9-23

SAP AG 1999

EFTA - Switzerland (2)

Diskette

File version Paper version

Selection program

SD billing documents

2

1

3

Intermediatedatabase

n The system supports the creation of the VAR (simplified export procedure) declaration for Switzerland:

n Selection of the relevant export billing documents n If data is missing in the documents, the selection program issues an incompleteness log. n Depending on the type of log chosen in the selection program, the system copies the data from the

selected documents into intermediate database VEXAV. n You can create the VAR declaration on paper in a single step from intermediate database VEXAV. n The system creates the VAR declaration on diskette in two stages: First, the file version is created

from intermediate database VEXAV. Then, the file is copied onto diskette. n The incompleteness log and the list of open business transactions (billing documents that have not


(C) SAP AG LO640 9-24

SAP AG 1999

Japan - MITI / Customs

MITI Export Report(yushutsuhokokusho)

Customs Declaration for Import(yunyukamotsudaikin no shiharai ni kansuru hokokusho)

Japan: n The MITI ministerial office regulates export/import flow. n The customs authorities gather the necessary information for the MITI.

(C) SAP AG LO640 9-25

SAP AG 1999

Japan - MITI: Export Report

Prerequisites:

l Exports to all countries

l Output type AUSJ

l Total amount > 5 mil. YenExport reportMITI


Print report

Customs

MITI

n The export report (yushutsuhokokusho) is a declaration of exports used by the authorities for statistical purposes.

n The export report must be created for the MITI for every export billing document with a net value of more than 5 million yen.

n The customs office receives these documents and passes them on to the MITI.

(C) SAP AG LO640 9-26

SAP AG 1999

Japan - MITI: Collective Export Report

Export reportMITI


Print report

Selection program

List of billing documents:x 5100001010o 5100001015x 5100001055....

Customs

MITI

n You can use output control to print out the export report (yushutsuhokokusho) for a single billing document.

n Alternatively, you can create a list of billing documents which you can use to print all the export reports that you need.

(C) SAP AG LO640 9-27

SAP AG 1999

Japan: Customs Declaration for Import

Customs decl.

Import invoice

Print report

Selection program

List of import invoices:Invoice Year Co. code

x 9000007211 1998 5000o 9000007216 1998 5000x 9000007055 1998 5000....

Customs

n The customs declaration for import (yunyukamotsudaikin no shiharai ni kansuru hokokusho) must be given to the customs authorities for customs processing.

n A customs declaration for import must be created for each vendor import invoice.

(C) SAP AG LO640 9-28

SAP AG 1999

Periodic Declarations: Summary (1)

l The SAP System supports automatic creation ofseveral different types of declarations.

l These declarations are based on the data in thepurchasing and sales and distribution documents.

l Country-independent selection programs gatherdata from documents that fall within the reporting period and store the results in an intermediatedatabase, which is used as a basis for all further processing.

(C) SAP AG LO640 9-29

SAP AG 1999

Periodic Declarations: Summary (2)

l When it reads the documents, the system determines whether data is missing for a specific declaration and creates a list of this missing data (log of incomplete items).

l You can use individual maintenance to add missingdata to INTRASTAT, EXTRASTAT or V.A.R declarations.

l The declaration can be created on paper, diskette or in EDIFACT format CUSDEC/INSTAT.

(C) SAP AG LO640 9-30

Periodic Declarations - Exercises


To demonstrate periodic declarations, we will create a complete INTRASTAT declaration for receipt and dispatch.

• Select the relevant documents for declarations to the authorities.

• Configure the incompleteness log

• Create paper, file and EDI versions of the various declarations

You are responsible for creating monthly declarations of imports and exports for your company. You have to make sure that the data is maintained correctly and that the right documents are selected.

SAP AG 1999

INTRASTAT

EUCreate paperCreate paper

DatabaseDatabase

Create fileCreate file

Create diskCreate disk

File

MM documents SD documents

SelectSelect SelectSelect11

22

33

44

55

66

Exercise - Periodic Declarations

1 Receipt : Selection of documents

(C) SAP AG LO640 9-31

Select all the Materials Management (MM) documents from the current month and year. Pay special attention to the type of log. Use the universal currency (UNI) as the declaration currency. What are the possible characteristics for the log type? _______________________________________________________________ _______________________________________________________________ How and where can you influence the scope of the incompleteness check? _______________________________________________________________ _______________________________________________________________

2 Paper version - Germany Create a paper version of the INTRASTAT declaration for your company in Germany. Report month <current month> Reporting year <current year> Company code 1000 Goods direction Receipt (1) If the system does not generate a declaration, what could the problem be? _______________________________________________________________ _______________________________________________________________ If the system does generate the declaration, select Print preview.

(C) SAP AG LO640 9-32

3 Dispatch: Selection of documents After you have made your INTRASTAT declaration for goods receipt from countries outside the EU, you must declare your dispatches within the European Union to the German Federal Office of Statistics. In the meantime, you have sent a sample diskette to the authorities for testing and they have authorized you to create your declaration in diskette format. First, select the Sales and Distribution (SD) documents with the following attributes: Report month (current month) Reporting year (current year) Company code 1000 Pay special attention to the log type. The system then lists all billing documents that are to be declared for this reporting period. This data is updated in a table. What is the name of this table? _______________________________________________________________

(C) SAP AG LO640 9-33

4 Creating a file using Germany as an example Once data selection is complete, you want to create a file of INTRASTAT data, from which a diskette can then be generated. Enter the following on the selection screen: Report month <current month> Reporting year <current year> Company code 1000 Goods direction Dispatch (2) If you like, you can create the log first in step one without creating the file. Pay special attention to the cover sheet. Is the data that appears on the cover sheet complete? ________________________________________________ If not, why not? ________________________________________________

5 You can create a file in step two. You can select the following as the file name: /usr/sap/trans/tmp/INTRA##

(C) SAP AG LO640 9-34

6 Create a diskette using Germany as an example Enter the necessary parameters: Type of data file _______________ Source file _______________ Target drive C Subdirectory TEMP Target file INTRA## This run creates the INTRASTAT file INTRA##.ASC on the drive C on the hard disk in the TEMP directory. If you select Issue log, the system displays a list that includes all data records onscreen.

7 Create a CUSDEC/INSTAT declaration for Sweden You want to run a CUSDEC/INSTAT declaration for your company in Sweden. Assume that: Company code 1000 is in Sweden rather than Germany. Do not repeat document selection; create the CUSDEC/INSTAT declaration for Sweden directly.

(C) SAP AG LO640 9-35

Periodic Declarations - Solutions

Unit: Periodic Declarations

1 Receipt : Selection of documents Select all the Materials Management (MM) documents from the current month and year. Pay special attention to the type of log. Use the universal currency (UNI) as the declaration currency. Periodic declarations cockpit → Create Periodic Declarations European Union → INTRASTAT → Germany → Receipt → Step 1 What are the possible characteristics for the log type? A, B, C: Intermediate database VEIAV is updated (‘Update run’) D, E, F: Intermediate database VEIAV is not updated (‘Test run’) How and where can you influence the scope of the incompleteness check? You can make settings for the incompleteness check in Customizing. Sales and Distribution → Foreign Trade/Customs → Periodic Declarations → Control Data → Log of Incomplete Items – Aggregation Criteria – Individual Maintenance Additionally, you can make settings for aggregation, field selections and controls for the maintenance transactions here.

(C) SAP AG LO640 9-36

2 Paper version - Germany Create a paper version of the INTRASTAT declaration for your company in Germany. Periodic declarations cockpit → Create Periodic Declarations European Union → INTRASTAT → Germany → Receipt → Step 2 Reporting month (current month) Reporting year (current year) Company code 1000 Goods direction Receipt (1) If the system does not generate a declaration, what could the problem be? There is no data in intermediate database VEIAV. If the system does generate the declaration, select Print preview.

(C) SAP AG LO640 9-37

3 Dispatch: Selection of documents After you have made your INTRASTAT declaration for goods receipt from countries outside the EU, you must declare your dispatches within the European Union to the German Federal Office of Statistics. In the meantime, you have sent a sample diskette to the authorities for testing and they have authorized you to create your declaration in diskette format. First, select the Sales and Distribution (SD) documents with the following attributes: Report month (current month) Reporting year (current year) Company code 1000 Periodic declarations cockpit → Create Periodic Declarations European Union → INTRASTAT → Germany → Dispatch/Export → Step 1 Note the log type. Set the log type toUpdate run The system then lists all billing documents that are to be declared for this report period. This data is updated in a table. What is the name of this table? VEIAV

(C) SAP AG LO640 9-38

4 Creating a file using Germany as an example Once data selection is complete, you want to create a file of INTRASTAT data, from which a diskette can then be generated. Enter the following on the selection screen: Report month (current month) Reporting year (current year) Company code 1000 Goods direction Dispatch (2) If you like, you can create the log first in step one without creating the file. Periodic declarations cockpit → Create Periodic Declarations European Union → INTRASTAT → Germany → Dispatch/Export → Step 2 Selection screen: Deactivate the Create file indicator If not, why not? - Material number is missing → Selection screen – INTRASTAT ID is missing → Maintain in Customizing: Sales and Distribution → Foreign Trade/Customs → Periodic Declarations → Maintain Official Numbers for Declarations to Authorities Additional details

5 You can create a file in step two. You can select the following as the file name: /usr/sap/trans/tmp/INTRA## Periodic declarations cockpit → Create Periodic Declarations European Union → INTRASTAT → Germany → Dispatch/Export → Step 2 Selection screen: Select the file and then enter the file name.

6 Create a diskette using Germany as an example Enter the necessary parameters:

(C) SAP AG LO640 9-39

Periodic declarations cockpit → Create Periodic Declarations European Union → INTRASTAT → Germany → Dispatch/Export → Disk → Step 2 Type of data file DE Source file /usr/sap/trans/tmp/INTRA## Target drive C Subdirectory TEMP Target file INTRA## This run creates the INTRASTAT file INTRA##.ASC on the drive C on the hard disk in the TEMP directory. If you select Issue log, the system displays a list that includes all data records onscreen.

7 Create a CUSDEC/INSTAT declaration for Sweden You want to run a CUSDEC/INSTAT declaration for your company in Sweden. Assume that: Company code 1000 is in Sweden rather than Germany. Do not repeat document selection; create the CUSDEC/INSTAT declaration for Sweden directly. Solution is the same as the solution for exercise 6 of this unit.

(C) SAP AG LO640 10-1

SAP AG 1999

l Introduction

l Process overview

l Vendor declarations

l Preference determination

l Use in sales and distribution processing

Preference Determination

(C) SAP AG LO640 10-2

SAP AG 1999


l Carry out the basic processes necessary for preference determination

l Create a vendor declaration request run or a dunning run

l Describe the preference determination process

l Explain the determination results

l Use these results in sales and distribution processing

Preference Determination: Unit Objectives

(C) SAP AG LO640 10-3

SAP AG 1999

Preference Determination: Overview Diagram

Introduction

Basic Data



Legal Control




Import Basis Module

(C) SAP AG LO640 10-4

SAP AG 1999

What is Preference?

n Customs preference is an instrument of trade that has a high degree of economic importance for both the importing and exporting country.

n Customs preference in export translates to favorable customs duty rates or customs exemption for an importer in a third country (non-EEA state). Consistent application of customs preferences can therefore result in a marked improvement in competition.

n Goods imported into the EU by several non-EU countries enjoy preferential treatment. This means that the import customs duty rate is reduced from the normal third-country customs duty rate or exempted completely. In return, many non-EU countries extend similar preferential treatment to EU products.

(C) SAP AG LO640 10-5

SAP AG 1999

Canada USA

Mexico

Preference Processing: NAFTA - Preference

n All preference rules relative to the North American Free Trade Agreement (NAFTA) are described in that document in Annex 401 - Specific Rules of Origin.

n Preference rules used among NAFTA countries are very similar to those applied within the European Economic Area (EEA).

n There are various ways to indicate that your product originates in your country. NAFTA, for example, uses the following procedures: � Tariff shift (origin regulation):

Tariff shift means that the product or its components were processed or refined to such a degree that the commodity code can be changed.

� De minimus rule (maximum of 7% non-originating goods): According to the de minimus rule, a product qualifies for preference if no more than 7% of that

product is made up of non-originating goods. � Vendor declaration as certificate of origin:

Your vendors supply you with a document certifying that the product or its components originate in your country or economic zone.

(C) SAP AG LO640 10-6

SAP AG 1999

Preferential Measures/Zones

ACP

EC

Developing countries (GSP)

Jordan/Gaza Strip

Bosnia andHerzegovina,Macedonia, Yugoslavia

Faeroe Islands

Mediterranean countries

PL, CZ, SK, HU, BG, RO, EE, LV, LT, SI, XJ

Turkey

Israel, Tunisia,Melilla, Ceuta

Andorra

EEA / EFTANorway, Iceland,

Liechtenstein

Overseas countriesand regions

Partially mutual preference

Mutual preference

Unilateral preference

Origin preference

Customs exemption preference

Last updated 1999

n The EC has made different preference agreements with various countries and groups of countries. n Unilateral and bilateral agreements between the EU and individual countries include: � Morocco � Israel � Malta

n Bilateral agreements between the EU and groups of countries include: � MOEL (HU, PL, CZ, SK, SI) � Baltic states (EE, LT, LV) � ACP (African, Caribbean, Pacific States-68 developing countries)

(C) SAP AG LO640 10-7

SAP AG 1999


Ex Works price 1,955.00

Preference price 1,010.00

Preference

EUR1

Preference determination

Update material master

(main component) Customslog

Condition record with condition type:

PREF: 1,010.00 created

SD document (sales order/billing document)

Results

n Explode the BOM

n Use preference rules defined inCustomizing

Archive determination results

Checkdocument

Main component

Preference processing steps: n The bill of materials (BOM) is exploded and the preference rules that were defined in Customizing

are applied to the components. n As a result of the determination, the preference status is set for the main component in the material

master and a condition record with condition type PREF (threshold preference price) is created. Results are determined and saved for each preference zone.

n The preference determination results for the main component are archived in the form of customs logs. That way, they are available later for use in checks run by the customs authorities.

n The Sales and Distribution (SD) sales order compares the preference price with the ex-works price and recognizes the preference situation for the current delivery (ex-works price must be greater than or equal to the preference price).

n In order for pricing to find the valid condition record, whose key contains the preference zone of the ship-to party, you need to define the countries that make up the preference zone in Customizing.

n If the system determines a positive preference status, it allows you to print a goods movement certificate (EUR1).

(C) SAP AG LO640 10-8

SAP AG 1999

Preference Processing: Process Overview

Request / dun vendor declarations

Compress data on material master level

Preference determination in SD sales orders and billing documents

Preference determination

Print movement certificateCreate vendor declarations for customers

l Top-down explosionn Individual determinationn Collective determination

l Assembliesn Individual determinationn Collective determination

l Compare preference price to Ex Works price

Administration of vendor declarations22

33

44

55

11

66

n Preference processing can be broken down into six steps. These steps are described in detail on the following pages.

(C) SAP AG LO640 10-9

SAP AG 1999

Vendor Declaration - Request/Reminder

VendorMaterialPurchasing organizationPlant

After validity dateexpires: Print letter/reminder

10803 Vendor AveVendortown

Dear Sir/Madam

Please send us…...................................

Sincerely

SAP AG

Pref. zone ValidIDReminderdate

ACPPAN

AB

Dec. 31, 2000Dec. 31, 2000

1080100-30010001000

Selection


Output formats:SAP formMaterials listMS Word form letter

11

Printer

n The process of requesting a vendor declaration may be made up of several steps: � Initial letter to the vendor � Two reminders sent to the vendor if no vendor declaration has been provided

n The program automatically updates the data in the purchasing info record. n Simulate: If you select this indicator (which is always selected in the standard system), the system

prints the letter but does not update the dunning data in LFEI. n Process level - vendor: By selecting this indicator, you tell the system to process the vendor

declaration records only on the vendor level. These records are valid for all vendor materials, not material-specific. (Key field MATNR in the LFEI structure has a value of BLANK.)

n Update info records: This indicator can only be used when the Simulate indicator has not been set and the Process level - vendor has been set. When the system is in update mode and you select this field, cross-material vendor declaration records and material-specific vendor declaration records are displayed or updated. In this case, the preference data of the higher-level LFEI record is copied into all material-specific records.

n Lack of a vendor declaration has a negative effect on preference determination. Without a vendor declaration, the corresponding goods are treated as "non-originating" goods during preference determination and are assigned a general duty rate.

(C) SAP AG LO640 10-10

SAP AG 1999

Vendor Declaration - Administration

VendorPurchasing organizationPlant

Material Plant ValidIDPref.zone

100-300100-300. . .

10001000

CC

Dec. 31, 2000Dec. 31, 2000

108010001000

22

Status

ACPPAN

OKOK

Vendor declaration

Selection

n You can manage or display vendor declarations with this function. n You must enter the vendor, purchasing organization and the plant in order to maintain a vendor

declaration. The system then lists all materials with valid purchasing info records for the vendor you entered.

(C) SAP AG LO640 10-11

SAP AG 1999

Vendor Declaration - Data Compression

Material master - individual componentsCommodity code

Description


Material master - main component

Commodity code

DescriptionCustoms tariff preference

Preference determination for themain component (takes all indiv.components into consideration)

33VendorMaterial

Purchasing info records Vendor declarations

Material ValidIDPref.zone

100-300100-300

CC

Dec. 31, 2000Dec. 31, 2000

Status

ACPPAN

OKOK

Customs tariff preference X

Pref.zone

ACPPAN

Pref.ID

- - - -- - - -

Vendor declaration received

C Dec. 31, 2000C Dec. 31, 2000

Customs tariff preference XPref.zone

ACPPAN

Pref.ID

C Dec. 31, 2000B April 3, 2000

Vendor declaration received

- - - -- - - -

44

n This function analyzes the vendor declaration indicator for all components of a material. The system then allocates one vendor declaration indicator to the entire material according to this component analysis.

n This function must have been carried out before preference determination can take place, since the compressed indicator is used in determining the preference code. As the vendor declarations are compressed to trade goods, however, the preference code is assigned without preference determination. See Special Case: Trade Goods (below) for more information.

n You can select all purchasing info records for a material with this function. The deciding factor for including a particular purchasing info record is its latest vendor ordering activity. The system compares the date of the latest ordering activity with the current date. If the difference (in days) is greater than the given tolerance days (PO tolerance), this info record will not be included in compression.

n Special Case: Trade Goods : You can use this function to compress the vendor declaration indicator for a certain material and assign a preference code without running a preference determination. The system uses this preference code directly in sales and distribution documents. Since this function allows a faster determination of the preference code, you can use it when you only need to determine preference codes for a few materials.

(C) SAP AG LO640 10-12

SAP AG 1999

Determination: Top-down Explosion

B1

B1.1 B1.2

B2

B2.1 B2.2

B1.1.2 B1.2.1 B1.2.2B1.1.144

B2.2.1 B2.2.2

Goods originating in your country: In-house production

Goods originating in another country

Main component

Goods originating in your country: Vendor declaration received

n Preference determination determines the origin of products produced in-house. Using a bill of materials, the system rates all components used to make in-house products as either originating or non-originating in your country, depending on their origin. Preference determination can be carried out in individual determination for a certain material or as a collective determination for a group of materials.

n The bill of materials is the basis for preference determination. The bill of materials must be exploded. As it is exploded, the program can access all components so that it can carry out preference determination. When you use the bill of material explosion - top-down explosion method, note the following: � The bill of materials is always exploded to multiple levels. � Externally procured components are not exploded further, even if a bill of materials is assigned to

them. This especially affects assemblies that can be either produced in-house or externally procured. If a special procurement key is assigned to this component in the material master, the procurement type is determined via this key and the explosion is controlled accordingly. If this material has no special procurement key allocated to it, these components are taken to be externally procured and are not exploded further in spite of the bill of materials. � If one of the components in an assembly has multiple bills of materials, the relevant bill of

materials is selected according to the quantity of the component in the assembly and then exploded.

n When all bills of materials have been exploded, all bill-of-material items are displayed. If errors occur, processing is terminated and the system issues an informational message.

(C) SAP AG LO640 10-13

SAP AG 1999

Determination: Assemblies

GS-E-6-3 V/S: 50.-O : 30.- AP: 0.00NO: HS: 8471

GS- F-7-4 V/S: 5.-DI: A HS: 8201

GS-E-7-3 V/S: 25.-O : AP: 25.-NO: 10.- HS: 8471

GS- F-8-4 V/S: 5.-DI: A HS: 8204

GS- F-9-4 V/S: 7.-DI: A HS: 8214

GS-E-8-3 V/S: 20.-O : AP:NO: HS: 8301

GS- F-4-3 V/S: 7.-DI: A HS: 8503

GS-E-5-2 V/S: 100.-O : AP: 70.-NO: 27.- HS: 8501

GS-E-4-2 V/S: 100.-O : 50.- AP: 25.-NO: 10.- HS: 8473

GS- F-3-2 V/S: 30.-DI: A HS: 8517

GS-E-2-1 V/S: 200.-O : 100.- AP: 75.-NO: 30.- HS: 8521

GS-E-3-1 V/S: 150.-O : 100.- AP: 100.-NO: 30.- HS: 8517

GS- F-1-1 V/S: 100.-DI: A HS: 8541

GS- F-6-4 V/S: 10.-DI: B HS: 8003

GS-E-1-0 V/S: 470.-O : 350.- AP: 400.-NO: 100.- HS: 8542

GS- F-2-2 V/S: 30.-DI: A HS: 8501

GS- F-5-4 V/S: 20.-DI: B HS: 8001

GS- F-10-4 V/S: 8.50DI: A HS:

44

n As opposed to the top-down explosion method, assembly determination analyzes each assembly separately.

n The various assemblies are normally selected and determined according to level number beginning with the ones at the bottom and working up.

n If an assembly is positive , the total value of the assembly is carried into the next level. If the assembly is negative , only the negative portion of the assembly is carried into the superordinate level.

n Legend for the example: GS-E-* : Material master number - in-house production GS-F-* : Material master number - processed externally O : Origin NO : Non-originating V/S : Material price AP : Accrued price DI : Vendor declaration indicator HS : Harmonized System number

(C) SAP AG LO640 10-14

SAP AG 1999

Pref. Determination in SD Sales Orders/Billing Docs

Determinationin pricingDeterminationin pricing Ex Works price

EURO 2010.00EURO 2010.00

Preference

EURO 1952.00EURO 1952.00

Preference indicator

55

SD order or billing document

Item

n You can use this function to compare the Ex Works price with the preference condition record of condition type PREF.

n If the Ex Works price is greater than or equal to the preference price in PREF, the item qualifies for preference. If the Ex Works price is less than the preference price in PREF, the item is not eligible for preference.

n The pricing procedure PREF000 is used for preference determination in the standard system. n The graphic above illustrates a situation where an item is relevant for preference, since the Ex Works

price (NETWR) is greater than the preference price (PREF).

(C) SAP AG LO640 10-15

SAP AG 1999

Print Movement Certificate

EUR 1 ATR Customs invoicetext module

Billing document

66invoice

Laser printerPrinter

----------EUR1____________________________________

n The preference indicator can be used to decide whether a corresponding verification document such as an EUR1 or ATR (goods movements certificate for Turkey) movement certificate is to be printed or if a comment should be made in the commercial invoice.

(C) SAP AG LO640 10-16

SAP AG 1999

Create Vendor Declarations for Customers

CustomerMaterialPreference zonesCustomer billing docs Vendor

declaration

1002M01 to M99ACP, PAN, ...1002

Selection

Output formats:IHK form (Germany only)Materials listMS Word form letter

Material Pref.zone

M01M01M01

M02M02M02

M03. . .

Status

ACPPAN. . .

ACPPAN. . .

ACP. . .

Can be changed manually

66

3 Customer AveCustomertown

Dear Sir/Madam

We hereby declare . . .......................................

Sincerely

SAP AG

Printer

There are several steps involved in the process of creating customer's vendor declarations: n You can use various criteria to select materials for which you want to create a declaration. You can

select materials according to the material's preference information. You can also use the preference indicator in your customer's billing documents for material selection.

n The system then returns a list of materials that are marked positive or negative and divided according to preference zone. You can change this status manually.

n You can create a vendor declaration for your customer for the materials that appear positive in the list. You can print either a separate document for each material or a list of materials. You can also print the data as an MS Word form letter.

(C) SAP AG LO640 10-17

SAP AG 1999

Preference Determination: Basic Data

Required master data

l Preference zones

l Procedure

l Preference rule/percentages

l Assign country/preference zone (SD)

Necessary settings

l Bill of materials with tariffed material masters

l Purchasing info records

l Vendor masters

Checklist

Checklist

Customizing

Requirements for preference determination: n Your bills of materials kept in stock must contain materials with valid commodity codes. n You need to maintain the following objects: � Define Preference Zones � Define the procedures applicable for your company � Assign Preference Rule / Percentages

n In addition, the tariff shift can be set either when you call up the determination program or in Customizing.

(C) SAP AG LO640 10-18

SAP AG 1999

Preference Determination: Summary

l You can define any number of preference zones for preference determination.

l There is no limit to the number of preference rules andpercentage rates or combinations of the two.

l The results of preference determination are immediately available in Materials Management (MM) in the material master and in Sales and Distribution (SD) in the sales orderand billing processing.

l If comparative calculation in pricing produces a positiveresult, the preference indicator is set in the document.

l This preference indicator allows you to print a movement certificate and clearly defines the preference status.

(C) SAP AG LO640 10-19

Preference Determination - Exercises

Unit: Preference Determination

In this unit, we want to describe the options provided within preference processing:

• Request/Dun vendor declarations

• Administration of vendor declarations

• Aggregation at material master level

• Preference calculation

• Using the results in sales and distribution processing

To carry out preference processing correctly, you must coordinate with at least three different areas to ensure consistent and precise results:

1. Materials management: Maintain material master and purchase info records

2. Production: Maintain bills of material for production

3. Sales and distribution processing: Use the preference results

These points are reflected in the system.

SAP AG 1999

Preferencedeterminationvia bill-of-materialexplosion

84138413

84838483

84858485 84858485

Exercises - Unit 9 - Preference Determination

(C) SAP AG LO640 10-20

1 Basic data – Bill of material

First, you want to familiarize yourself with the structure of bill of materials P-402.

Display the bill of materials by using the Initial Screen Foreign Trade/Customs to access the Master data section of the Preference Processing cockpit. What is the main component’s commodity code? _____________________

2 Basic data – Control objects/Customizing

Your goal is to be able to take valid rules and implement them in the SAP System. Two examples of such rules include rules from the Collection of Rules from the National Financial Administration (Vorschriftensammlung der Bundesfinanzverwaltung) in Germany or from the North American Free Trade Agreement – Annex 401 in the USA. For this exercise, go to the Environment section of the Preference Processing cockpit (which you can reach via the Initial Screen Foreign Trade/Customs).

Which core tables does the person responsible need to maintain for preference processing?

Purpose of the first object: What preference procedure should you use?

_______ ____________________________

Purpose of the second object: What combination of preference rules and percentages do you need? Which rules do you need? _______ ____________________________

Purpose of the third object: Which commodity codes from the main components start the determination process and which preference procedures are affected?

_______ ____________________________

3 Vendor declaration - request

(C) SAP AG LO640 10-21

Request all vendor declarations for your French vendor (from unit 2) in simulation mode. These should be printed on a form.

For this exercise, go to the Vendor declaration section of the Preference Processing cockpit (which you can reach via the Initial Screen Foreign Trade/Customs).

Check the data in the info records and the error log.

Which preference zones were selected?

______: _______________

______: _______________

4 Administration of vendor declarations

The EU vendor to whom you sent the vendor declaration request sends you the completed vendor declarations.

For this exercise, go to the Administration sub-section of the Vendor declaration section of the Preference Processing cockpit (which you can reach via the Initial Screen Foreign Trade/Customs).

Enter this data into the system.

- Preference zone ACP: Long-term vendor declaration until the end of the current year

- Preference zone PAN: No vendor declarations

5 Aggregate vendor declarations

The law requires that system data be preserved in the system (in case something happens to the original data).

Aggregate the long-term vendor-declaration data for some of the sub-components from bill of material P-402 in the simulation mode.

For this exercise, go to the Administration sub-section of the Vendor declaration section of the Preference Processing cockpit (which you can reach via the Initial Screen Foreign Trade/Customs).

(C) SAP AG LO640 10-22

6 Vendor declarations – Material master

Compare the main component’s preference data in bill of material P-402 with the preference data of one of the sub-components (such as 100-300).

Main component – Vendor declaration indicator ___ __________________

Preference indicator ___ __________________

Sub-component – Vendor declaration indicator ___ __________________

Preference indicator ___ __________________

7 Calculation – Top-down - Individual calculation

Once you have finished the necessary preparations, you can start the preference determination.

Run an individual preference determination (top-down method) for bill of material P-402.

Check the results and the various logs.

What effects would the Save and print function have in an update run?

Effect 01: ____________________

Effect 02: ____________________

Effect 03: ____________________

(C) SAP AG LO640 10-23

8 Using preference in sales and distribution processing

Sales and distribution benefits most from preference processing.

Which condition type must be set in the price calculation procedure in the sales order and what two price values are compared?

Condition type _____ ______________

Comparison ____________________ < > ____________________

9 Sales order

Check to see how the system sets the preference indicator in the sales order by creating a sales order for a customer in Poland using material P-402.

This indicator is used when you print the movement certificate based on the export billing document or the pro forma billing document.

10 Create vendor declarations for customers (optional)

Your Polish customer (from exercise 9) requests that your create a vendor declaration for material P-402.

Describe how you performed this step.

(C) SAP AG LO640 10-24

Preference Determination - Solutions

Unit: Preference Determination

1 Basic data – Bill of material

Logistics → Sales and Distribution → Foreign Trade/Customs

Preference Processing cockpit → Master data section

Select Material BOM and choose Display master data.

Commodity code for the main component: 84137040

2 Basic data – Control objects/Customizing


Preference Processing cockpit → Environment section

Purpose of the first object: What procedure should you use?

T604V Preference determination / Procedure

Purpose of the second object: What combination do you need? Which rules do you need? T604R Preference rule/percentages

Purpose of the third object: Which commodity codes from the main components start the determination process and which preference procedures are affected?

T604P Commodity code and rule per preference zone

(C) SAP AG LO640 10-25

3 Vendor declaration - request


Preference Processing cockpit → Vendor declaration section

Vendor → Request → Form

Preference zones that were determined by the system:

ACP African, Caribbean and Pacific Countries

PAN Pan-European Cumulation Zone

(C) SAP AG LO640 10-26

4 Administration of vendor declarations


Preference Processing cockpit → Vendor declaration section → Administration sub-section → Maintain

5 Aggregate vendor declarations


Preference Processing cockpit → Vendor declaration section → Administration sub-section → Aggregate

6 Vendor declarations – Material master


Preference Processing cockpit → Master data section

Select Material master and choose Display master data.

Main component – Vendor declaration indicator A

Preference indicator B and A

Sub-component – Vendor declaration indicator B and A

7 Calculation – Top-down - Individual calculation


Preference Processing cockpit → Calculation section

Top-down sub-section → Individual

Effects of the Save and print function:

Effect 01: Customs log/Entry in archiving object

Effect 02: Threshold preference price as condition record

Effect 03: Preference indicator B in material master of the main component

(C) SAP AG LO640 10-27

8 Using preference in sales and distribution processing

Condition type PREF Preference

Comparison Threshold preference price <> Ex Works price

9 Sales order

The preference indicator can be found on the Sales A screen in the SD order or on the Item details view screen in the SD billing document.

This indicator is set when the threshold preference price is greater than or equal to the Ex-Works price of the item.

10 Create vendor declarations for customers


Preference Processing cockpit → Vendor declaration section →

Customer → Form

lo640 foreign trade customs 46c

Documents

intermediate

purchasing

intermediate

intermediate

desired master

finding code

t1 transit

commodity