The in bond scenario at the time of the import in India

[Former Member]

Dear All,

Is an in-bond scenario in SAP in import in India?

We process in the following procedures now using a CIN function.

1. MIRO for Custom duty
2. MIGO for GR and Capture EI
3. J1IEX for posting EI
4. MIRO for Vendor payment
5. GI (with some transactions)

I think that I can make payment of Custom duty in the timing of GI if a bonded storage is used.

How can we realize this scenario with SAP transaction?
Do we have to develop?

1. MIGO for GR (without EI)
2. MIRO for Vendor payment
3. ???? for for Custom duty
4. GI (with some transactions)
5. ???? for posting EI

I would like to also learn the reference method of PO or Material document.

Best regards,
Iwana

[Former Member]

Hi, Rajasree,

Thank you for answering.

It is an elementary question. What is "+ive & -ive" excuse me?

And we don't have Bonded warehouse yet.(physically and in system)
We have managed Stock in one plant.

Then, we would like to avoid that the inventory cost of a duty-free material for export and the taxation material for India domestic sales will be averaged.

As the method, using Bonded warehouse was also considered carefully.

Although we want to exclude these tax condition from inventory cost, the reply from OSS says we can not control it by configuration setting.

JCDB  Basic Customs Duty
JEDB  Customs Education Cess
JSDB  Customs Sec & Higher Education Cess

Are these really uncontrollable?

Regards,
Iwana

[former_member192897]

In that case, create three more condition types by copying JCDB, JDB, JSDB and put Plus / Minus as Negative in conditon type M/06 and have inserted them in th Import pricing procedure.

By doing so, the said conditions will not load on inventory..

[Former Member]

Hi, Ashok,

Thanks for your comment.

Althogh I tried the procedure according to your instruction, this message has appeared.

  Negative delivery costs not allowed
   Message no. 06259

It seems an error message uncontrollable as warning or information in the configuration.

How can we operate as you say?

Thank you for your cooperation in advance.

Regards,

Iwana

[former_member192897]

Seems you have copied the above four conditions already. Now go to M/06 and choose the copied Condition type (Eg : ZCV1) and remove the Condition categor "B" and Save the condition. Now you should be allwoed to use the Condition with negative value in Imports Purchase order besides Standard condition type JCV1 (or a copy of it)

[Former Member]

Hi, Ashok,

Thanks for your prompt reply.

I could avoid the error message 06259 with the aid of your comment.

But we have a new problem.

In our custom duty proccess, we post the duty payment with these 5 kind of duties.

JCDB  Basic Customs Duty
JEDB  Customs Education Cess
JSDB  Customs Sec & Higher Education Cess

JCV1  CVD
JADC  Additional Customs Duty

In these, only 3 (JCDB, JEDB, JSDB) conditions were included into material cost.

Other 2 conditions were posted into tax account with Excise invoice.

Then I defined 3 negative conditions (ZJCD, ZJED, ZJSD) according to your advice.

But now, the "Excise Invoice" tab or "Excise Item" tab does not come on MIGO screen.

So when I post the MIGO, the Customs Clearing accounts were generated like below...

Itm PK BusA Account    Account short text   Assignment         Tx           Amount     Amount in LC

  1 89 CMJ  127101     Raw material & Suppl 670000102100100                12,392         6,196.00
  2 96 CMJ  461200     GRIR(Goods Received  670000102100100                10,000-        5,000.00-
  3 50 CMJ  145591     Customs Clearing     670000102100100                 2,613-        1,306.50-
  4 50 CMJ  461212     GR/IR(Freight)       670000102100100                   200-          100.00-
  5 50 CMJ  461213     GR/IR(Customs fee)   670000102100100                   400-          200.00-
  6 40 CMJ  145591     Customs Clearing     670000102100100                   821           410.50

Item No. 3 is the whole amount of 5 custom duties.

Item No. 6 is the portion of 3 conditions (ZJCD, ZJED, ZJSD).

Before this setting, Item No. 3 was the portion of 3 conditions (JCDB, JEDB, JSDB).

And other portion (JCV1, JADC) was captured and posted with Excise invoice.

We expected the accounts like this example. (picked up only Customs Clearing portion)

MIGO

>  3 50 CMJ  145591     Customs Clearing     670000102100100                   821-          410.50-

>  6 40 CMJ  145591     Customs Clearing     670000102100100                   821           410.50

J1IEX

>  4 50 CMJ  145591     Customs Clearing               00000    V0           896-           896.00-

How can we realize this?

Regards,

Iwana

[former_member192897]

Since you have already loaded the Conditions JCDB, JSDB, JEDB during procurement at port, you donot need to use these conditions again during stock transfer process from Port to Manufacturing plant (Excisable)

You only need to use the Conditions JCV1, JECV, J1CV and JADC to get the excise credit in Receiving plant. Since, its a STO process, the said four conditions will load on Inventory part in receiving plant and adjust the MAP during Goods issue  / PGI from Port. To avoid loading the said four conditions into Inventory, we need to use the Negative conditions by copying the above so that the amount is not loaded on inventory and at the same time to get the excise credit for these conditions. (Donot put the Condition category "B: in these condition types)

Have checked with complete cycles and check the accounting entries and confirm the same with your Client.

[Former Member]

Dear Ashok,

Could you give me a document like with captured screens when you check the process?

I think because I cannot fully understand, it is not realizable as your advise.

Regards,

Iwana

[former_member192897]

If you want to Pay the custom duties during transfer of Material from Port to Depot then donot Enter the Custom duties while procuring at Port. Enter these conditions in STO. You can check yourself all the cycles and revert back in case if you stuck up..

[former_member192897]

As there will be no excise process in Port (Bonded warehouse) You can normally procure the goods into Port by creating a Import Purchase order and in PO conditions have insert the Custom duty conditions and Perform Custom duty MIRO and MIGO and the proceed for Invoice verification for the Goods and for Planned delivery costs if any...

Here, there will be no excise part and all the custom duties JCV1, JECV, J1CV, JADC will get loaded on Inventory during GRN..

Then you perform Stock transfer order from Port to Manufacturing Plant (Excisiable).

Create STO in Receiving Plant considering Port as a Supplying Plant.

Insert the Custom duties JCV1, JECV, J1CV, JADC in STO and perform Goods issue against STO (MM Route) or create an Outbound delivery with respect to STO in VL10B and Perform PGI (SD Route)

Now receive the goods in Receiving plant through MIGO and in Excise tab check whether excise duties are flowing. If not, you may enter the excise duties manually and Post the GRN and then proceed for Excise invoice Posting in J1IEX..

And Perform MIRO if there are any planned delivery costs other than Custom duties in MIRO transaction..

Please note...

1) In the STO Process, you donot have to perform any Excise transaction in Supplying Plant (Port)..

2) STO settings from Excise point of view need to be maintained though its a Port. Excise Plant settings have to be maintained in CIN configuration along with J1ID settings.

3) Since you have loaded the custom duties already during Procurement at Port.. Create Four more conditions by copying JCV1, JECV, J1CV and JADC and choose Plus/Minus as Negative in M/06 Condition types and have inserted them in STO Pricing Procedure so that Excise values are flown in MIGO transaction from Custom Condition types and also the Custom duties are not loaded on Inventory..

[Former Member]

Hi,

Stock transfer of imported material from Bonded warehouse to a plant
cannot be done in the normal STO way-

The steps to be followed are as below-

1. STO without CVD conditions only custom conditions will be there
2. Do customs MIRO and pay custom duties
3. PGI , Delivery
4. Migo wrt OBD "No excise entry" Or chose "Only part1" (excise values
   will not default  neither will the commercial invoice pop up comes.)
5. Capture EI via J1IEX > EWPO option enter values manually.
   Activate CVD indicator to imply imports. You can use any additional
   text fields and enter GR no there.
6. Pay the CVD duty seperately through FB60 to the Customs Authorities
   directly!

OR if you want to pay CVD with customs then-

1. In STO create two conditions, for CVD, one  +ive & one to set this
   off in -ive. Make the positive CVD condition as a delivery cost cond
   so that you can pay CVD to customs vendor when you pay customs duty.
   Value will not add to inventory as the +ive & -ive value will get
   set off with each other.
2. Do customs MIRO and pay custom duties as well as CVD.
3. PGI , Delivery
4. Migo wrt OBD "No excise entry" Or chose "Only part1" (excise values
   will not default  neither will the commercial invoice pop up comes.)
5. Capture EI via J1IEX > EWPO option enter values manually.
   Activate CVD indicator to imply imports. You can use any additional
   text fields and enter GR no there.

This is the standard process to be followed for Import STO.

Regards,

Rajasree R