Free goods exported

[Former Member]

Dear Guru's

We have encountered a scenario from the client, the scenario is as followed

Client Exports goods with 100% discount on base price. As we all Know Excise is exempted during export in this case there will be no charges levied to the customer.

In this case how config the system accordingly.

We have same scenario in domestic there we charge customer with excise and taxes. But during exports ????

Please guide me as of how to address in SAP. I even searched the Forum I did not find any thing regarding this scenario.

Regards

Kiran Nazare

[former_member184080 · Accepted solution]

Re: Free goods exported

kesari sai krishna Sabniveesu Oct 30, 2012 7:05 AM (in response to Ashish Mishra)  

Currently Being Moderated

Hi Kiran,

Generally, we will have separate sales document type and billing document type for export scenarios. Most of the export cases there will not be any excise posted to accounts are charged from customers. Due to the fact that, exports doesn't need to pay excise duty in India. However, you still need to generate the excise Invoice as goods are moving out from your factory. to achieve this, please follow below steps and see if its working as per your requirement.

Maintain separate pricing procedure for exports and maintain all 3 excise conditions (JEXP,JECS,JAIX) as statistical conditions.

While generating excise invoice in J1IIN please use export type (either B, N or U) automatically system will not generate any account document as it doesn't carry any excise value postings.

However, Please use a logic in excise invoice form to eliminate excise values printing in the excise invoices ( In case of my client, they still wanted us to show the excise values so we didn't do this).

Hope the above may answered your query, let me know if you need any further inputs.

Regards, Sai Krishna.

[Former Member · Accepted solution]

Dear kesari

Thanks for the response

here I am following the same process where as we have a condition that the material is given 100% discount during export and even excise is not applicable.

so how to track this in sap.

Regards

Kiran Nazare

[Former Member · Accepted solution]

Dear Kirankumar Nazare

For what you want to make the track...???

Thanking you!

Ashish

[Former Member · Accepted solution]

Dear Kiran,

As per my knowledge the solution for your query as below.

There  is no need to change any item categeories for this particular scenario.

use regular scenario. and remove taxes in customer master aswell in pricing procedure

sales Document type:- OR

item categeories ; TAN

Schedule line : CP / CN

client wants to export the material with 100% discount on basic price??

This can be solved in a simple way.

create pricing procedure and atlast include 100% discount condition type before nettvalue.

then the invoice value shows zero and 100% discount on basic price.

Regards,

Raviteja

[Former Member]

Dear Kirankumar

You can achive this via using Condition Type "R100" in your export pricing procedure.

The Standard Condition Type R100 discounts 100% for sales price of the item that is given as free goods. Requirnment "55" ensures the 100% discount applies on free goods items by checking for pricing type "B" of the item category. Condition Base value "28" automatically applies a 100% discount without having to create a condition record for it.

Means with R100 you will use Requirnment 55 and Conditon Base value 28.

Thanking you!

Ashish

[former_member184080]

Hi Kiran,

Generally, we will have separate sales document type and billing document type for export scenarios. Most of the export cases there will not be any excise posted to accounts are charged from customers. Due to the fact that, exports doesn't need to pay excise duty in India. However, you still need to generate the excise Invoice as goods are moving out from your factory. to achieve this, please follow below steps and see if its working as per your requirement.

Maintain separate pricing procedure for exports and maintain all 3 excise conditions (JEXP,JECS,JAIX) as statistical conditions.

While generating excise invoice in J1IIN please use export type (either B, N or U) automatically system will not generate any account document as it doesn't carry any excise value postings.

However, Please use a logic in excise invoice form to eliminate excise values printing in the excise invoices ( In case of my client, they still wanted us to show the excise values so we didn't do this).

Hope the above may answered your query, let me know if you need any further inputs.

Regards, Sai Krishna.

[moazzam_ali]

Mr TW's suggestion is good. I would like to add in it that use TANN of copy for free goods. Check free goods VBN1 in google if you don't know about free goods functionality.

Also you must have separate sales area for export like distribution channel must be Export. Create separate pricing procedure for exports if required to calculate different taxes and excise duty for export sales and domestic sales.

[former_member182378]

MoazzaM,

I appreciate you "bringing in" / mentioning new sales area and a different pricing procedure.

I feel that the new sales area might already have been created an assigned to a sales document type (for export sale).

But could you please explain why you are suggesting Free goods functionality (VBN1 etc.)?

If the requirement is to give 1EA free with 10EA, then free goods functionality would be used, but I feel that the requirement is to give the entire quantity in the order with 100% on the base price.

[moazzam_ali]

Yes TW sir you are right. If the requirement is to give 100% goods FOC then your suggestion is good. If there is 1 material FOC with 1 normal Sale material then VBN1 can be used. I think requirment is to give all materials FOC so TANN and R100 condition is good to use for this scenario.

[former_member182378]

Kirankumar,

In the export business process, would you client need billing document creation?

If yes, then you could go with standard sales process with item category TANN (or a copy thereof)

If not, you could look in to Free goods process -

sales order > delivery

In VOV8, sales document type FD

In VOV7, item category KLN or KLX

[Former Member]

Dear TW

Thanks for your valuable feed back, here as I had mentioned earlier there is a  100% Discount given(Excise  Material) to customer and the same material may be charged for normal price also

eg: part no. xyz price is 100

with 100% discount the price becomes '0'.

In such case what will be the impact on excise and other taxes during exports.

regards

Kiran Nazare

[former_member182378]

Kiran,

Most important is to understand "the client requirement", thereafter you can configure the requirement.

100% Discount:

If there should not be ANY tax etc. in export sales for TANN (100% free goods), then see, in pricing procedure, if getting the tax condition types above condition type R100 would help you.

Or in pricing procedure, would you have to add a requirement to check the tax value and then populate only if it is not TANN.

Normal sales and tax:

If you don't want tax in normal export sale, this too is possible.

First understand and explain clearly what business wants.

[Former Member]

Please any body reply.

Kiran Nazare