Advance License

[Former Member]

Dear All,

Issue is regarding the Advance License.

Client requirement is Imported Material is not charged with Customs Duty. However, condition being within 5 yrs 5 times of value to be exported.

This material being processed only for EXPORT, and while selling duties are not applicable in any of the Document right from Sales order to Excise Invoice & ARE1 doc. Finally this material to be updated in RG1 Register with Nil duties.

Is this the real time practice for the aforesaid issue. How to map this in SAP. Is this mapped in Standard SAP. Whether Nil duties to be in all the docs from Sales order to ARE1 n finally in RG1 register.

Valued inputs will be of great help as I have not worked on the same. If possible let me know how exactly Advance license in real time n to map the same in SAP.

Regards,

Vijayashree

[Lakshmipathi · Accepted solution]

Is this the real time practice for the aforesaid issue

Answer is YES.

Unfortunately, for most of the India specific export scenarios, SAP has not addressed but they have given authorisation to maintain the required table through authorised vendors like Collabera, Trivandrum. They have ready made package for all sort of export scenarios.

If this is not feasible, then you will have to create a zee table where you need to have fields for the following:-

a) Applied to DGFT on

b) Application sent to (Chennai, Mumbai etc.,)

c) Licence received on

d) Licence reference

e) Valid upto

f) Export product code

g) Export Obligation quantity

h) Unit of Measurement

i) Import product code

j) Quantity Imported

k) Unit of Measurement

l) Obligation Value in Foreign Currency

m) Obligation Value in local currency

n) Balance obligation quantity

Apart from the above, you can also have some additional fields depending upon the requirement.

Once this marathon exercise is over, you need to apply a suitable billing exit through which, whenever a billing document is generated, system should read the material code and update the "n" column cited above.

Also you may have to fetch a standard customs declaration in export billing documents like "This export is in fulfillment of export obligation against Advance Licence No.XXXXXXXXXX dt.xxxxxxxx

Since this being export, you should have a separate pricing procedure where you need to have the excise and tax condition types as statistical in case you have maintained

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Dear Laxmipathi,

Thank you for the response and to get the scenario regarding Advance License as I have mentioned.

However, as of now Duties in Pricing Procedure is maintained as Statistical. But clients requirement is duties to be ZERO. Same in case of Subsequent documents like Excise Invoice & ARE1 creation. It seems as of now they are giving ARE1 with duties as ZERO. Is this the real time scenario.

Can you please clarify regarding the same. Inputs will be of great help. sharing personal ID is not right practice in this form, could you furnish your personal ID for future communications.

Thanks n regards,

Vijayashree

[Lakshmipathi · Accepted solution]

If the client dont require the values to be even statistical, then you remove those condition types from your export pricing procedure. But check with the client whether they have Rebate Exports occasionally in which case, you cannot remove the excise condition types from your pricing procedure. As you would be aware, for Rebate Exports, the excise amount should be posted to FI.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi Laxmipathi,

Thank you for the valuable inputs.

However, all the duties were statistical earlier. Now its customized as per the requirement ie., duties being removed from Pricing procedure and mapped accordingly.

Issue is solved.

Got to know about the advance license scenario in detail.

Thanks n regards,

Vijayashree

[former_member621589]

This message was moderated.