HIgnsea Sales Scenario Clarification required

[prasanna_kumar4]

HI,

Kindly Guide me What is the main purpose by going the highsea sale process because i am new to this concept

please can any one guide me like with real time business scenarios and what configuration is required

and also i checked in google "site:forums.sdn.sap.com highsea sales in sap" but i m not clear

please guide me

Regards,

Prasanna

[jpfriends079 · Accepted solution]

As per mapping on SAP is concern,

this is almost similar to Third-party Sales, except, statistical GR for the goods.

So the process follow will be

Sales order - Automatic PR Generated 
-  PO by referring generated PR - GR (Statistical)  
- IR (i/v verfication) - High Sea Sales Invoice

But, the major difference is, WHERE IT TAKE PLACE & WHY?

High sea sales is effected by exchange of documents at a point beyond the territorial waters to avoid custom duties.

Means high sea sales is a sale made while its in sea only.

Suppose a Heavy Machinery Construction Equipment company imports a heavy machinery and generator from Germany to construct its plant in India for his client.

Now this co. have to ultimately sell these equipments to his client and for it has to pay service tax.

To save this tax of about 12% high sea sale is made, i.e., company sells these equipments when they are in sea. B'coz of this ownership transfers to its client, and turn they ending up saving this tax which they otherwise have to pay if they would raise invoice to that the client for this sales.

Thus, High Sea sale takes place when the cargo is already loaded on a ship and sailing on the high seas (international waters, under no jurisdiction) without actually being sold to the final buyer yet. Seller is looking for a buyer, while shipment is on the way. Once the cargo is sold, the captain of the vessel is notified to change course and deliver it to the new buyer's port. Usually the ship is sailing in a certain direction (example: from Brazil to Middle East). Seller is looking for buyers in destination area (which in this example can be any Middle Eastern country, India, Pakistan, etc..)

For better explaination, you can following link:

- [HIGH SEA SALES|http://www.psbedi.com/highseasales.htm]

Regards

JP

[prasanna_kumar4 · Accepted solution]

Thanks for Reply Prakash

Can you please tell me what is the purpose of raising statistical GR rather than Normal GR

and also is there any documents we need to submit to the Govt . I heard that E1 & E2 please clarify

Regards,

Prasanna

[jpfriends079 · Accepted solution]

As per my knowledge, For E1 & E2 are related to CST for Sale in Transit. Which means Sales made by the Buyer (subsequent

seller), without taking the physical delivery of the Goods bought during the movement of goods from one state to another i.e. goods resold by transferring the documents of title of the goods, normally called G.R. / R.R. to the another party (Subsequent buyer).

And I already mention and also name suggest High Sea Sales carried out outside the territorial jurisdiction of India.

Now,

purpose of raising statistical GR rather than Normal GR

This b'coz you are not physically receiving the goods to your plant. Only for records.

Regards

JP

[prasanna_kumar4 · Accepted solution]

HI Prakash,

I need small clarification,

without actually being sold to the final buyer yet

On what basis they will raise the PO because the vendor is not yet finalized because we don' t know to whom we can sell this material / Heavy Machinery Construction Equipment how we can track in SAP system. bcoz vendor is not yet confirm

I am just little bit confusion to understand ( bcoz it is a normal 3 rd party sales but it is happened on Sea and also for saving the TAX purpose {what document they will submit to the Govt to save the TAX }

Regards,

Prasanna

[jpfriends079 · Accepted solution]

Why PO? 

How you expect procurement guys to purchase and procure a Machinery.

So, to procure you will have PO.

Sales guys will only come into picture when you intend to sale the procured material on sea.

3rd party sales 

No way, its a 3rd Party sales. As 3rd party starts with Sales Order.

Highsea Sales Order will already have PO for reference.

what document they will submit to the Govt to save the TAX 

You are neither getting this passed through Customs, so NO custom charges. Nor any duties for importing a goods.

Please note, you have already paid statutary duties & taxes while importing the goods for the vendor country. So those will be part of your pricing duiring sales.

Regards

JP

[Former Member · Accepted solution]

Hello JP.

Thanks for sharing this information.

Rgds

Kintu

[Former Member]

PROCESS

1)First the company will place a purchase order on foreign vendor for materials (Eg Qty : 50 Nos)

2) Once the material is in sea, the company will start finding the domestic customers or already

finalized the customer to whom the material to be sold.

3) The entire quantity will arrive at the port.

4) The customer will pay the customs duty and clear the qty required by him (e.g 25 Nos),

it would be possible to bill the partial quantity or complete quantity.

5) The remaining qty (e.g 25nos) we will be cleared company, if the company couldn't find customers

for the remaining qty.

STEPS IN HIGH SEA SALES

1.create a PO without or with reference to a PR.

2.create a Sales Order with reference to PO. (VA01)

3.Do MIRO based on PO.

4.Do MIGO ( the stock will get updated in the plant).

5.Do the delivery once there is stock.(VL01N)

6.create invoice ( VF01)

Regards,

REX

[Former Member]

Hi,

Can you advise how you create SO with reference to PO? because i understand that for 3rd party, SO will auto generate the PR number. But in High Sea sales, the PO is definitely created first (and based on our company policy, PO has to be created with reference to PR used for approval). And then subsequently we have to link the SO to PO.

Thank you.

Regards,

Huimin