Export of Gift items with Exciseble Goods

[Former Member]

Hi Friends

My client is a manufacturer exporter of Pharmaceutical Products . They follow the process of Export by using Letter of Undertaking

Now they want to send some Gift Item (which are brought from out side) along with the Exciseble Goods. As you all know pharmaceutical company use to give Gifts to Doctor stockiest etc.

So please suggest How to map this requirement along with its export procedure & configuration from SAP CIN (Excise) point of view up to ARE1 Doc.

They also use Automatic Batch determination Procedure (in Delivery Doc.) , please take it into consideration before mapping this requirement

Best Regards

Ashokt

[Lakshmipathi]

Whether the material is exciseable or not, when you export, it is exempted from excise duty. So you can very well show it in your billing document and excise invoice. Of course, for the gift item, you can include a manual condition type for 100% discount so that it will not get debited to customer account in FI.

thanks

G. Lakshmipathi

[Former Member]

Hi Ashok

I think this forum is for solving specific issues on which you are stuck while attempting a task or process.

Do not simply ask everything to forum members.

Anyway , I would suggest you try to map the scenario following way and revert if u ahve any specific issues.

As you mentioned :

Co. gifts some materials to Customers outside india . The gifts may be manufactured or may not be manufactured by company.

For manufactured items > use FERT material code and maintain RG1 and ARE 1 process as in normal exports.

and for non manufactured items > treat them as Material Type HAWA but they are purchased items and you have to take into account purchase cost incl tax and duties. and then send them to customers with a new price or without new price. In this case there is no set off for Duties or taxes .

For Pricing and account determination part > Maintain regular pricing and before net pricing use 100 % discount condition type and pass the accounting entry to sales promotion expense account,. If u discount the pricing for base price then calculation of duty value in invoice .export excise invoice and ARE 1 will be a problem.

I hope you already know the default conditions and classify condition types maintenance in CIN settings.

Batch determination will only affect your delivery ,picking and packing and u can maintain packing list and ARE1 Output as per your requirement.

Imp piece is accounting and pricing part and that is little different due to indian taxation requirement.

I hope this helps

Regards