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Working with Intrastat for a Hi-tech Trading Company:

Intrastat stands for Intra EC Trade Statistics. Intrastat is the method of collecting information on the movement of goods between countries of the European Community(EC) as at December 2008 these are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. It does not apply to services except where they form part of the cost of the goods, such as freight or insurance charges.. Although the countries of the EC became a Single Market in 1993, they did not become a single economy, so trade statistics are still needed by governments, the EC Commission and a number of other users including the United Nations and, of course, business.

Importance of Intrastat in Governance across Europe:

The Intra trade statistics continue to be important because they are:• A vital part of the balance of payments, A method of monitoring the economic health of the member countries, Used by the Governments to set and assess trade policy, and Used by businesses to assess markets and gauge market penetration. The Governments uses the Balance of Payments account as part of its ‘books of account’, using the data to monitor the health. Trade statistics are also used by various government departments, such as the Department of Trade and Industry (DTI) and Department for Environment, Food and Rural Affairs (DEFRA) and other organizations, including the European Commission, Bank of England and United Nations agencies (such as the International Monetary Fund). Additionally, businesses themselves can access the information to identify market opportunities and trends.

Intrastat In SAP and Our Usage

The standard SAP Intrastat (Transaction VE01) solution does not capture many of the goods movements that are carried out by our company, for example: Movements from Plant to Plant, Customer returns, and other Intercompany sales. The standard SAP provided separate extracts for different countries and their arrivals and dispatches under different transaction codes. The referred process is time taking, and when it comes to submission to authorities most of these extracts are required under one roof as the business stretches all over Europe and our business is neither Inter company nor standard as different company codes uses plants belonging one company code and pay commission for the same.

In view of the above a customized Program was developed to provide comprehensive capture of all goods movements applicable to Intrastat. Solution Proposed: The Intrastat system is based around the SAP-standard solution which captures Billing documents that represent movement of goods across internal EU borders. The resulting records are stored in table VEIAV. We are then working with additional customized processes which are used to the following:

• Modify/delete the Standard SAP records where ever necessary (e.g. excluding certain item categories)

• Capture movements that are not captured by the Standard SAP program, e.g. return, plant-to-plant movements, consignment fill-ups etc.

• Combine the additional records with the modified records created by the Standard SAP program and copy them to a customized table.

Records created by billing documents are designated as a Dispatch from the departure country. It is the customer’s responsibility to report the Arrival in their country. Delivery documents are used by the customized Intrastat program to capture customer returns. Items within a delivery document are only captured if :

(1) The movement is across an internal EU border, and

(2) The Item category has been maintained in the ‘Billing Items’ customized configuration table and

(3) The billing document type is maintained in the ‘Source Documents’ customized configuration table. The material master Moving average price is used to populate the invoice value and statistical value fields in the Intrastat records.

Material movement documents are used by the Intrastat customized program to capture the movement of goods from plant to plant, or from/to consignment stock. Items from material documents are only captured if

(A) The movement type has been maintained in the “Source Documents” customized configuration table and

(B) They involve a movement of goods across an internal EU border. Material movements create both an Arrival and a Dispatch.

Returns from a customer do not necessarily result in a billing document (a credit memo may be issued in some cases), so it is not possible to use billing documents to capture the returns. Therefore a customized program has been developed to identify returns from the associated delivery document. An Arrival record is created for the return.

Plant to Plant transfer postings are captured by the Intrastat program from the movement type (301 or 302) on the material document. The control of which movement types are associated with plant to plant postings is maintained in a customized configuration table.

Storage location to Storage location transfer postings are captured by the Intrastat program from the movement type (931 or 932) on the material document. The control of which movement types are associated with plant to plant postings is maintained in the customized configuration table and it also works similar to the above Plant to Plant movements.

Stock transfer postings are captured by the Intrastat program from the movement type (641) on the material document. The control of which movement types are associated with stock transfer postings is maintained in the customized configuration table.

Consignment fill-ups and pick-ups are captured by the Intrastat program from the movement type (631 or 632) on the material document. The control of which movement types are associated with plant to plant postings is maintained in the customized configuration table.

Due care needs to be taken in customization foreign trade settings so as to fulfill the necessary criteria that the documents appearing in the Intrastat report shall contain, else the same will be placed in incompletion log.

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