Refund Duty in Pricing

[former_member657193]

Hi

I am working on Pricing procedure for UAE, IN the export scenario,,,

In the case of Export there is a 5 % duty is chargable , that is given to the Govt department . And one the Client confirms the

EXPORT , that is they give the Proof of EXPORT to the Authorities there, this 5 % duty is refund back to the Client.

Since this duty is not charged from the customer , so i that case please guide me as how i will include in my pricing procedure.

This is a refundable duty so i cannot charge it from customer.

Can any one guide me as how i configure the pricing so that at the end of the day i will know what is refundable duty . And how i will process the refund of this duty.

Cheers

[Lakshmipathi]

I have dealt with exports for several years long time back during which, I was handling many overseas customers including UAE customers.

But I never come across one UAE customer who came with such a requirement and if my understanding is correct, this is a value imposed in UAE Customs on UAE Importers. For this, if the UAE customer produces Certificate of Origin duly certified by Chamber of Commerce in India, that customs value will be exempted. Otherwise, UAE Customs will levy Import Duty on their Importers.

Please check with client whether what I said is correct. If so, it is client's headache to submit the above certificate. This is out of SAP. We cant do anything.

thanks

G. Lakshmipathi

[former_member657193]

As per my requirement,,,

i am in UAE,,So when i export the Material from UAE there is 5 % Export Duty applicable which is refunded back once i Submit the

proof of Export to the authorities.

Now in this case suppose if i create this ZWAS condition as STATISTISTICAL, it will not hit A/c Key and the relevant G/L account

and i will not be able to calculate the value.

If i Create ZWAS as NON-Statistical then it will hit the G/L account and my liability will be created . AS i cannot charge this REFUNDABLE account from customer then in that case , I cannot create it as NON-Statistical.

Even if i create this as NON-STATISTICAL, HOW WILL i knock-OFF my G/L Account. HOW will i KNOCK-off my G/L account.

[Lakshmipathi]

Sorry I misunderstood your requirement that the exports is from India to UAE and I had accordingly, given the above suggestion.

No problem, you maintain the condition ZWAS as non statistical so that yes it will hit the assigned G/L Account. Parallelly, you create one more condition type in V/06 which should be 100% discount of ZWAS and you have to assign the From Step number of ZWAS. Now for this discount condition type, you maintain a new G/L Account in such a way that it should off set the ZWAS condition value.

thanks

G. Lakshmipathi

[Former Member]

Hi Rishi

As per the previous discussions in this thread ,i understand that u have to pay the duty to department and that also in case when u have not given proof of export. Correct me if required.

Secondly duty is not to be levied to customer.

So in pricing procedure u can set 2 conditions as Our friend Mr.Lakshmipati has advised.

For the first liability condition u can provide a provision G/L which will accrue the values like rebate.

Setoff condition to be made statistical.

FI department at client site must be handling this payment of duty as separate transaction not attached to regular customer incoming payment.

so they should always get a provision in this case for liability arising out of nonsubmission of Proof of export.

The further part can be handled in FI through JV may be.

secondly is this duty if its levied to us also available for credit /utilization .

do confirm that as well before finalizing the option.

Kind regards

Mandar

[former_member657193]

HI

Thanx

I did the same thing as told by you, and now this is working fine.

Now i case of Export when i am billing /invoice the customer, i have made my TAX condition type ZWAS as Statistical

i am getting this error

""Tax statement item missing for tax code A0""

I have searched the treads and check all the relevant settings for Tax code and all the stuff. I am not able to resolve it.

In fact when i create DOMESTIC invoice i am not getting any such kind of error.

Plz guide as why only in case of Export i am getting this error

[Lakshmipathi]

'"Tax statement item missing for tax code A0""

For the above error, check these threads

[Error : Tax statement item missing for tax code |]

[Re: FF805 Tax statement item missing for tax code |]

[Re: Tax statement item missing for tax code S1|]

thanks

G. Lakshmipathi

[former_member188076]

Hi

If I understood your requirement correctly, then, your requirement is that you want to calculate the Duty of 5% but do not want to debit the same to Customer account.

You make this Condition type Statistical in Procedure and then assign a Posting Key to take this to some other G/L account as per your requirement.

If I am not correct, then you better explain a little bit more.

regards

Amitesh

[former_member657193]

HI,

AS you told if i create this condition ZWAS as statistical then it will not hit the A/c KEY and the Entry will not go into the G?L account.

Statistical Condition values does not hit the G/L account as of my understanding.

Plz suggest