indirect exports or merchandise exports

[Former Member]

Hi

Scenario:-

My client has a scenario where he receives an order from the customer and also CT1 form and ARE1 form

It is the case of merchant export. I am not able to

understand, how to create ARE1 form in this case as

the customer is a domestic customer.

For domestic

customer ARE3 form will be used, as it is the case of

deemed export. But here client wants to follow the old

procedure of getting the ARE1 form only.

Kindly guide me, how to solve this issue.

[Former Member · Accepted solution]

hi

thanks for all your inputs

suppose if i stop my sales cycle upto the creation of excise invoice

then rest is the manual process as attaching the customers CT1 and ARE1

what will be the possible consequences?

regards

[Former Member · Accepted solution]

Hi Rithvika,

As per the requirement of statutory guidelines, you need to put the ARE number out of your running series on customer's ARE-1 document, so if you do not create ARE-1 document in the system then how will you use that number. If you dont use that number then the same ARE-1 number will be used for your own export as well which should not happen.

Hope i am clear on this, in case you still have more doubts then either write back or you can check the business process with your nucleus team member.

Rgds,

Antima

[Former Member · Accepted solution]

>

> Hi Rithvika,
> 
> As per the requirement of statutory guidelines, you need to put the ARE number out of your running series on customer's ARE-1 document, so if you do not create ARE-1 document in the system then how will you use that number. If you dont use that number then the same ARE-1 number will be used for your own export as well which should not happen.
> 
> Hope i am clear on this, in case you still have more doubts then either write back or you can check the business process with your nucleus team member.
> 
> Rgds,
> Antima

HI

Antima

Here the ARE1 IS PROVIDED BY THE CUSTOMER AND THE ARE1 NUMBER IS ALSO FROM THE CUSTOMER NOT OUR CLIENTS

MY CLIENT JUST FILLS UP THE ARE1 AND SENDS IT ALONG WITH INVOICE

REGARDS

[reazuddin_md · Accepted solution]

what i feel is, Creating ARE-1 for Deemed exports itself is illogical.(correct me if am wrong).

Still Client is doing the same, means Excise Dept must have accepted.

ARE-1 has serial no.s-

if we create ARE-1 for Deemed Exports ( though Creating is not possible), then the serial no will be distributed among Export / Deemed Exports.

Here one more req is:- If Export Customer will not Submit CT-1 form, then the Taxes are applicable such as CST.

Any of you come across this kind of scenario. in Export sales, if yes, how you addressed it.

[Former Member · Accepted solution]

Dear Rithvika,

If you are having that scenario then you can go ahead without creation of ARE-1 in your system. At my client's place the ARE-1 number has to be given by my client.

Rgds,

Antima

[Former Member · Accepted solution]

HI

Thanks to Alll

regards

[reazuddin_md · Accepted solution]

Hi Rithvika,

Let me know, what you decided to go for this req?-

its common req, would be helpful

[Former Member · Accepted solution]

HI

From sales side the cycle flow will be upto creation of excise invoice

Are1 will have the customers number not my clients number

regards[

[former_member196521 · Accepted solution]

Hello Antima,

I read your posts and my scenario is similar to yours where my client is receiving a blank ARE1 and CT1 document from the customer and the client will create an ARE1 document and as you said ARE1 no will have to be in sequence since there are pure export scenarios where my client also submits ARE1 documents. Apart from having two distribution Channels as CT1 and CT3, where do I need to assign these channels from a functional configuration and the user exit that you mentioned what logic should I give the abaper so that he can redetermine the excise invoice as export though my customer is defined as domestic. With regards to series group creation I would be creating two series groups S1 for domestic and S2 for exports please let me know if any further series group need to be created for the same. The bond no is given by the customer to my client and hence the ARE1 document will be created by using the customer's bond no, hence can an ARE1 document be created with reference to this scenario.

Kind Regards

Atul

Edited by: Gojolly99 on Jul 7, 2011 3:49 PM

[Former Member]

Hi Rithvika,

You can differentiate CT-1 and CT-3 by creating these as sales org or distribution channel. Then ask your ABAPer to put the coding in user exit J_1I7_REDETERMINE_INVOICE_TYPE to redetrmine the excise invoice type from local to export for CT-1 sales area. Once it gets created as export excise invoice then you can create ARE-1. For ARE-1, you can create CT-1 form of customer as LOU and assign it while creating ARE document.

Hope the suggestion above fulfills your requirement as we've already done it at our client.

Rgds,

Antima

[Former Member]

Hi Antima S,

We are got struck in similar case.

Can you explain a little bit.

You can differentiate CT-1 and CT-3 by creating these as sales org or distribution channel. Then ask your ABAPer to put the coding in user exit J_1I7_REDETERMINE_INVOICE_TYPE to redetrmine the excise invoice type from local to export for CT-1 sales area. Once it gets created as export excise invoice then you can create ARE-1. For ARE-1, you can create CT-1 form of customer as LOU and assign it while creating ARE document.

Hope the suggestion above fulfills your requirement as we've already done it at our client.

We have created

Domestic

Export

Deemed Export

Stock Transfer - as Dist. Channels

In deemed export sale - we use the Deemed Export dist channel-

Here as per your reply, my doubt is,

In deemed export sales, how can we create ARE-1?? I hope above queries posted also having similar doubts.

[Former Member]

Hi Abhishek,

Rather than deemed export, you can create 2 different dist channel as CT-1 and CT-3 for Deemed Export sales organisation. Now for CT-1 dist channel the coding has to be done in user exit to redetermine the excise invoice as export.

Hope i am clear in explaining it, if any doubts you can write back.

Rgds,

Antima

[Former Member]

HI

Your logic is good

but in SAP whille crating ARE3 or ARE1 it will take the excise grouip or series group into consideration and also in

merchant expoerts we will be getting customers ARE1 and not ours

we will be creating ARE1 for exports for that it should have bond or LOUT

which has to be created plant specific now on what v=basis we will create CT-1

even if i create CT1 in the system i can create only ARE3 only with reference to CT1.

but in Merchant exxports it is ARE-1

regards

[Former Member]

As I understood,

I dont think, it is suggestable to create New Sales Organization altogether becoz of only this requirement.

as we have domestic as well exports can be deal with Single Sales Organization, Dist channel is enough to differentiate the sales as well as for reporting.

Only the req here is:

- How to Create ARE-1 for Deemed exports sales? & Why, when Excise Authority provided different forms to use for diff type of sales such as ARE-1 for Exprots / ARE-3 for Deemed Exports.

- Where as in SAP, it suggests to Create ARE-1 for Exports & ARE-3 for Deemed Exports.

- Bcoz in ARE-1, we need to ref BOND type ,where as in ARE-3, we neeed to take Customer Deemed Export License.

- Is it suggestable to use ARE-1 for deemed export sales?

[Former Member]

Hi Rithvika,

For this scenario, you need to create Letter of undertaking or bond and give the CT-1 no in the Excise deptt no for bond/LoU. As ARE-1 is to be created so we cannot capture CT-1 licence for this but have to go with creation of Bond/LoU.

This logic has worked for us so it should help you as well.

Rgds,

Antima

[Former Member]

Hi

Antima but ARE-1 is provided by the customer along with his CT-1 form

this is merchant exports ok even if we create a CT-1 as LOUT as bond type and create ARE-1

on the ARE -1 it will be our factory address. ok

How this can be possible to create customer's ARE-1 in SAP?

i hope u had understood.

On ARE 1 the plant name and excise registration will flow from excise groups

regards

[reazuddin_md]

Your doubt is valid-

Let us recall once, abt ARE-1 / ARE-3 Creation procedure.

Create ARE-1, Tcode:J1IA101 -

with Ref: Excise Invoice number & Sold to / Ship to party details flow from Excise Invoice.

BOND number along with Year is mandatory to Save the document.

in Short:

To create ARE-1, ( Excise Invoice & Bond is required- CT-1 form)

Similarly,

To create ARE-3, ( Excise Invoice & License number is required)

where as our req is,

We have to create ARE-1 with ref to Excise Invoice & License.

Which means, License to be captured by Creating the same as BOND- I feel which is incorrect or not a right practise.

here, To fulfill the Client req.

Create ARE-1 with ref to Customer Deemed Export License- ?

Rithvika - Please Let me know, if i deviate from the actual query.

This is the major area,where we got stuck & have to finish at the earliest.

Ref:

[;

[Former Member]

Dear Rithvika,

As per my knowledge the CT-1 sales scenario goes like this:

Customer places an order with us along with their CT-1 and ARE-1(blank) form. We have to supply the material with export excise invoice and filled ARE-1 of customer. The ARE-1 number series has to be the same as our running series, for ge: if for our direct export the last ARE-1 no is 5 then we need to give 6 no on customer ARE-1 form.

Though we are giving the customer's ARE-1 physical form but in system we need to create ARE-1 to keep our series proper.Also we get signed copy of ARE-1 from customer as proof of export which needs to be filed with us.

Definitly as Abhishek suggested, there is no need to create sales org for this, we have also created it as distribution channel....but that was only a suggestion and the only point is that sales area should be different so that redetermination of excise invoice can be done.

Still any doubts, then write back.....

Rgds,

Antima

[reazuddin_md]

You Know,

I got stuck with the same case,

because here in my client, we have 2 comp codes in same instance.

One Comp is following ARE-3/CT-3 form for Deemed Exports, where as the other company is following ARE-1/CT-1 form .

So we are still in discussion with the client to follow one procedure instead of Two.

am waiting for the client feedback.