Plant Abroad vs Triangular Trade

[Former Member]

Hello

I am working on a shipping/tax scenario that I could use help with.

The company has a plant physically located in Germany with shipments made direct to customers in Netherlands and Belgium. Since our sales force is located in Netherlands and Belgium, the sales are considered domestic and as such we must apply VAT according to standard rules. Currently we have a plant and sales org in SAP for Netherlands (although no physical plant) with the NL address. We are adding Belgium and would like to use the same plant/sales org setup instead of creating new ones. We have setup separate storage locations for the NL and BE shipments with appropriate addresses within the SAP NL plant.

The problem becomes that BE is not recognized as a departure country. I think we can find a way around with user exits, however I would think we could do this using standard SAP. I have done some reading about the Triangular Trade in EU but I am unclear how many company codes must be involved to make this work. I have also been looking at Plant Abroad and wonder if this could work as both NL and BE are within the same company code. If we did use Plant Abroad would we need to actually create a BE plant?

Any suggestions or advice anyone has regarding Triangular Trade or Plant Abroad would help.

Thanks in Advance

Savitha

[Former Member · Accepted solution]

Hi Savitha ,

when you say "The problem becomes that BE is not recognized as a departure country", where? can you explain on this?

Triangular business involves 2 company codes. Customer gives order to CC A. CC A orders to CC B and CC B ships the material to the Customer. CC A bills to the Customer and CC B bills to CC A. I think in your scenerio, everything happens within the same company code.

Regards

Vinu.N

[Former Member · Accepted solution]

Hi Vinu

Thanks for the triangular explanation. We actually do have a second company code doing the delivery as the German plant is in a separate company code. Do you have any further info about how this would be configured?

When a sales order is created, the departure country is registering as NL, since this is the country associated with the sales org/plant. If I manually go in and change the departure country to BE, the sales order will not complete. Further, the tax classification countries available in the customer master are DE and NL (again due to the sales org/plant) and BE is not available nor can it be added.

Thanks

[Shiva_Ram · Accepted solution]

Take a look at OSS Note 10560 - Tax determination for plant abroad

To me it looks you may need to use user exit.

For triangular trade, refer OSS Note 938150 - Tax-relevant mapping of the EU triangular deal

Regards,