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Scenario:

Many of the industries will have requirement to import goods free of cost. This may be free samples, warranty replacement etc. Even though the goods are sent free of cost by the vendor, company needs to pay duty to the customs based on the Assesable value of the material. Also, there can be other delivery costs also.

There is no standard solution to address this. There are many solutions for this in SCN like creating standard import PO and posting credit memo after vendor invoice verification, maintaining an amount of 0.01 for gross price in PO and changing the duty values in MIRO, posting customs invoice in FB60 etc. We have recently addressed this through a different way which seems to be more logical and convenient. Just thought of sharing this, as this may be helpful to you.

Process:

First of all, a new pricing procedure needs to be defined for this purpose.

1. Create a condition type copying PBXX for Material Assesable Value (Say ZBXX).

Capture1.PNG

2. Create Pricing procedure without PB00 and PBXX. Include ZBXX and mark it as statistical. Subsequently add customs duty conditions and set subtotal 9 for customs duty condition.

Capture2.PNG

3. There should be a purchasing org exclusively for free of cost import (This may look odd, but this is required to trigger different pricing for same vendor for FOC and normal purchase.)

4. Assign this schema to vendor schema group and the schema group for the above purchase org.

5. In vendor master purchasing data for the above purchase org, set currency as local currency (Customs vendor currency) and set invoicing party as customs vendor.

Now when you create PO for free of cost import, enter the vendor and purchase org created for FOC import. When you enter the material assesable value, customs duties will be calculated accordingly. When GR is posted, there will not be any liability on vendor. Liability of the customs duty will be on the customs vendor. Proceed with invoice verification as usual.

Regards,

Sudeep.

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12 Comments

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  1. k j

    Hi Sudeep,

    Nice post,

    4. Assign this schema to vendor schema group and the schema group for the above purchase org.

    does it mean that we have to change the schema group before raising PO?

    Thanks

    (0) 
    1. Sudeep A Post author

      Hi KJ, Thank you.

      No, this is a one time setting in configuration. In Define Schema Group, define a schema group for FOC purchase org. Assign the new pricing procedure to this schema group and vendor schema group combination in Schema Determination.

      Regards,

      Sudeep.

      (0) 
      1. k j

        11-01-14 PM 01-15-36.png

        ZI- Import Sch.Grp Ven

        ZF- Free Goods Sch.Grp Ven

        we can not assign both in ven master, that is my question in earlier post?

        (0) 
        1. PRASOON AK

          Hi,

             You can assign only one vendor schema group for a vendor and purchasing org combination. That is why he suggested to go for different purchasing organization. You have to extend the vendor master to both the purchase org in MK01 and you may assign schema group ZI for the purchase org of normal import and ZF for the purchase org of FOC.

           

          Regards,

          AKPT

          (0) 
  2. PRASOON AK

    Hi Sudeep,

       Nice document. But there is chance that the users may misuse the different purchase organization and odd price, which may bypass the release also, as release procedure wont consider delivery cost in standard. We may think of blocking this too.

    Regards,

    AKPT

    (0) 
    1. Sudeep A Post author

      Hi Dev / AKPT,

      Thanks for your feedback. I don’t think users can misuse this, as the PO raised using this purchase org will not have any PB00/PBXX and hence PO output will be with zero price. also, they cannot do any invoice verification for the vendor. It would be easier to procure Out of SAP rather than misusing this functionality. And I don’t think a value basis release procedure is required for FOC import as you are paying nothing to the vendor, and you cannot have a negotiation with customs.. 🙂

      Regards,

      Sudeep

      (0) 
  3. Lakhya Pratim Baruah

    Hi Sudeep,

    I have tried configuring this scenario. However, system is not allowing me to create a PO as it is giving an error message “

    Net price must be greater than 0

    Any Ideas?

    (0) 
    1. Sudeep A Post author

      Have you put subtotal 9 against customs duty? have you entered value for the customs duty? if the answer is YES for both the questions, kindly share the screenshot of calculation schema and conditions tab in PO.

      Regards,

      Sudeep.

      (0) 

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