Custom Duty and CVD in CIN

[Former Member]

Hi,

how can we map the custom duty(basic.ecess.h sed cess) and cvd clearing (basic.ecess.h sed cess) in sap and how can we do the condition types in mm condition types and what we have to take access sequence for custom duty and cvd and where we have to give the percentages.

Regards,

Harish

[Former Member · Accepted solution]

Hi

Follow the below IMG Process:

T code: M/06

IMG : Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Condition Types

Cond Type & Description

JCDB - IN Basic customs

JCDS - IN Special customs

JCV1 - IN CVD

JECV - Educational Cess On CVD ( Counter Vailing Duty )

JEDB - Customs Edu. Cess

JADC - Add Customs Duty

SAP R/3 Standard system is delivered with two India specific pricing procedures JIMPOR u2013 IN: Purchase for Imported materials and JRM000 - IN: Purchasing for Domestic materials procurement process along with relevant condition types there in. These procedures have been copied to create new pricing procedures. It is advised that the users copy the standard pricing procedures for creating any new ones.

Check & Create the above Cond Type and assign with above pricing procedures.

Calculation Schema :

T code: M/06

IMG : Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Calculation Schema

Select JIMPORT - IN

Check & add the above COND TYPES and Acct Key (FR3 & FR4)

Define Schema Group :

IMG : Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Schema Group

Assign Import Vendor Group; P.Org Group; Pur Org etc.,

Define Schema Determination:

IMG : Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Schema Determination

Assing Scheme Grp P.Org - Sch. Grp Vendor - Pricing Procedure

Defining Document Type YIPO for Import Purchase Order:

IMG : Materials Management > Purchasing > Purchase Order > Define Doc Types

Copy the order type NB Standard PO. to YIPO Import PO Doc Type for the Import Procurement

Choose the document type NB and copy (F6).

Enter the new type YIPO and the document type description Import PO Doc Type.

Choose Enter.

Confirm the question about objects to be copied with Only copy Entry

The three dependent entries should be copied with the following entries:

Field Name - User Action and Values

Type - YIPO

Doc. type description - Import PO Doc Type

Item number interval - 10 (Check this Number interval)

Number range in the case of internal number assignment - 45 (Check & Assign)

Number range in the case of external number assignment - 41 (Check & Assign)

Update group for statistics update - SAP

Field selection key - NBF

Defining Allowed Item Categories:

Choose the line created for item category YIPO, double-click on Allowed item categories, and check the New entries

Allowed item categories for type YIPO

Field Name - User Action and Values

Item category

Text item category - Standard

Link Purchase Requisition-Document Type:

Choose the line created for item category YIPO, double-click on Link purchase requisition, and check the make following entries

Field Name - User Action and Values

Document type - NB

Description - Purchase requisition

Item category in Ref document - No entry

Descr. Item Cat Ref. Doc - Standard

Item category in Current document - No entry

Descr. Item Cat Curr. Doc - Standard

Maintaining output Condition Records: Purchase Order :

On screen Create Output u2013 Condition Records: Purchase Order you will get Output Type field, in put the value NEU in the field and choose Enter

After choosing system will give a popup screen with three radio buttons; choose Purchasing Output Determination: Document Type the third icon.

Select Doc Type : YIPO & Enter the following values will be default:

PartF - VN

Medium - 1

Date/time - 3

Select this line item and Choose Communication icon

Output Device - Give appropriate Pinter Name

Choose Enter and Save

After finishing the above Maintain Material & Chapeter ID Combination: T.Code: J1ID

Material-Plant-Chapter ID-Material Type-GR X ref-Decl Date

Material linked to Chapter ID

Maintain CENVATE Determination - T.Code: J1ID

Chose CENVATE Determination

Plant-Inpute Mat - Output Mat - X - Int Date

Maintaine Tax details of Vendor (J1ID)

After completing the above process Create PO and test

Hope that it will help you

Regards,

GB

[Former Member · Accepted solution]

Hi,

Thanks for your answer and i have one more question to ask when is the taken place for cvd Clearing i mean on which items we can impose the cvd clearing

Thanks&Regards,

Harish

[Former Member · Accepted solution]

Hi Harish,

you can maintain the CVD account in the below path:

SPRO - IMG -Logistic General -Tax on Goods movement -India - Basic Settings -Maintain Company Code settings

Select your company code and click on details button. You can see the field CVD account under Exchange Rate settings.

Regards,

Ramakrishna

[Former Member]

Hi ,

Can anyone please tell me why two different pricing procedures are required for import & domestic procurement in India.

Thanks & Regards,

BIsu

[Former Member]

CVD Clearing

CVD stands for Countervailing Duty. It is a form of excise duty imposed on imports that are subsidized in the country where they are manufactured.Countervailing duty (also known as CVD) is intended to make the imports more expensive, thereby redressing any competitive advantage they might have over goods produced locally.Unlike other forms of customs duties, such as basic customs duty or special customs duty, CVD paid on imports can be credited to CENVAT account.

The system handles CVD using a condition type for planned delivery costs. Specify which condition type to use in Customizing for Logistics – General, by choosing Taxes on Goods Movements - India - Basic Settings - Determination of Excise Duty - Excise Defaults

A CVD Clearing Account is maintained for the maintainence of CVD in SAP.

Process Flow for CVD Clearing

1. Create a purchase order for the goods that are needed and send it to the vendor. For each material one will have to pay CVD on when it comes through customs, enter the CVD as a pricing condition.

2.The vendor ships the goods - When the goods arrive in India, they go through customs. The customs officers issue a bill of entry for the goods, which is in effect an invoice for the CVD on the goods. Once they have inspected the goods, they send them on to us

3.The goods arrive at your plant, together with the bill of entry. In order to record the bill of entry in the system:

The excise clerk enters an invoice for the bill of entry

In Accounts Payable (FI-AP), the system creates a new vendor item for the CVD at the customs office. The item is offset to the CVD clearing account.

He then captures an excise invoice for the bill of entry

The warehouseman posts the goods receipt.

The excise supervisor posts the excise invoice.

The excise clerk enters the vendor invoice for the materials, following the standard procedure.

The A/c Entry passed are

Excise Duty Dr

CVD Clearing A/c Cr

Hope that the above information is useful to you.

Regards,

GB

[Lakshmipathi]

Dont copy paste from other source which is strictly prohibited

G. Lakshmipathi