V. Entering of Loading point and Loading person number should be made available in the
6.14 Export Support Sales:
6.14.7 Export Support Sales Contracts
6.14.7.1 Export support
Sales Contracts - do - - do - do
-6.14.8 Sales Order Processing & Execution
6.14.8.1 Proforma
Invoice - do - - do - do
-6.14.8.2 Sales Order
( work order) - do - - do - do
-6.14.8.3 Sales Order
Creation - do - - do - do
-6.14.8.4 Partner
Allocations - do - - do - do
-6.14.8.5
Material Specification
Entry - do - - do - do
-6.14.8.6
Availability Check &
Delivery Date Determination
- do - - do - do
-6.14.8.7 Terms & Conditions - do – - do - do
-6.14.8.8 Pricing, Taxes
& Discounts 1. Basic Price (this price should be picked up from the Price List Master and manual changes shall be done here, period wise reports should be made available for deviation of actual price with the price list price)
2. Excise (Excise should be applicable to all sales other than under bond exemption Sales) 3. Basic Price should be maintained in Indian
currency.
4. Sales Tax (full Provision should be made for the
1. Basic Price shall be maintained as a condition type and shall be picked up from the value assigned to the condition type for that material. Values shall be maintained for even customer-material combination.
2. For Sale from factory, Excise for a material is picked up from the value assigned to the chapter-id to which the material is assigned.
3. Sales Tax shall be calculated on the following basis:
If the Region of Sending Plant & Region
1-4 & 6,7,8,9- (A)
applicability of the sales tax for other than direct export).
5. All types of discounts which are defined in Discounts / Rebates should not allow blank fields.
6. By default system should select / show the following and ask the value for the following types of discounts as per the type of sales order.
TOD / QD for all NCO sales
Export Support Rebate for Export Support Sales
Other discounts
Freight Rebate
7. There should be a means for calculating the Net Sales Realisation which is achieved by
subtracting the minimum floor price from the net sales price. If the NSR is negative, approval for sales at the given price is to be obtained from DIC (Marketing) or competent level.
of Ship to Party (Region in Customer Master) is same, then Local Sales Tax is applicable.
For Other sales than direct Sale the value is picked up from the Local Sales tax condition type, which is assigned a value for that combination of Region of Sending Plant & region of Ship-to-Party.
If the Region of Sending Plant & Region of Ship to Party (Region in Customer Master) is different, then Central Sales Tax is applicable. The value is picked up from the Central Sales tax condition type, which is assigned a value for that
combination of Region of Sending Plant &
region of Ship-to-Party.
Also, if the customer produces a Sales tax concession Form then the Sales Tax shall be calculated as per the form.(e.g.
C Form).
5. Freight Value shall be calculated out as per the Incoterms maintained in the Customer Master, which are defaulted into the Sales Order.
6. ‘Disallowance of Blank fields’ for Freight Condition Types shall be provided.
7. Freight Condition Types shall be automatically determined based on Pricing Procedure Determination.
8. Condition type is to be maintained for NSR which will pick up the cost price of the subject material from costing and subtract the same from the net sales price to
calculate the contribution, which if negative;
workflow will be generated for approval from competent authority.
9. Pricing will also affect on the basis Incoterm i.e. FOB etc.
6.14.8.9 Credit Check As same as domestic sales As same as domestic sales As same as domestic
sales
6.14.8.1
0 Follow-up
Actions - do - - do - do
-6.14.8.1 1
Sales Order
Amendment - do - - do - do
-6.14.8.1 2
Sales Order
Deletion - do - - do - do
-6.14.8.1 3
Order
Cancellation - do - - do - do
-6.14.9 Delivery
6.14.9.1 Despatch Plan Process shall be same as domestic sales. This requirement shall be mapped similar to the
domestic sales. do
-6.14.9.2 Gate Entry
System - do - - do - do
-6.14.9.3 Empty Vehicle
Weighment - do - - do - do
-6.14.9.4
Delivery Order Creation &
Picking - do - - do - do
-6.14.9.5 Loading - do - do
-6.14.9.6 Final
Weighment - do - - do - do
-6.14.9.7 Post Goods
Issue - do - - do - do
-6.14.10 Billing
6.14.10.
1
Excise Invoice Generation / Selection
Excise Invoice should be generated without 1. payment of duty or 2. With Bond
1. Excise invoice shall be generated
automatically or manually after generation of billing document. To generate automatic excise invoice billing type is assign to delivery type. Or can be generated manually using J1II Transaction (with reference to billing.)
2. No excise will be charged under Intimation in form of Bond B1 ( ARE1 Form).
3. Invoice under bond/ certificate name shall be printed on the invoice.
4. No excise duty shall be debited to the
( A )
CENVAT account, and so no accounting entries shall be generated. However, the sale is marked as a export support sale and the system generates an outgoing excise invoice.
5. Even though the excise duty is zero, when the excise invoice is printed, the system calculates the duty for the purposes of printing.
6. RG1 register ( A Finish Good stock Register) shall get updated after PGI and RT12 (Monthly Return Register ) shall get updated after generation & posting of excise invoice.
7. Excise invoice is printed with the help of output determination corresponds to the no. of pre-printed stationary.
6.14.10.
2
Commercial Invoice Creation - Billing
Process shall be same as domestic sales. Process shall be same as domestic sales. Same as domestic sales.
6.14.10.
3 L.R.Preparation LR would be prepared by ISPAT on behalf of Transporter to reduce Time. All Details would be captured from Invoice.
LR’ Shell be prepared by capturing Delivery and
Invoice Details. ( C )
6.14.11 Credit Management
6.14.11.
1 Fixing Credit
Limit Process should be done as domestic sales Process should be done as domestic sales same as domestic sales.
6.14.11.
2
Calculating Credit Exposure
- do - - do - do
-6.14.11.
3
Performing
Credit Check - do - - do - do
-6.14.12 Customer Complaint Processing
6.14.12.
1
Receipt of Customer Complaint
Process should be done as domestic sales Process should be done as domestic sales Same as domestic sales.
6.14.12.
2 Quality
Notification - do - - do - do
-6.14.12.
3
Complaint
Settlements - do - - do - do
-6.14.12.
4
Customer Returns ( Sales
Return) Same as direct sales.
Returns shall be handled on the SAP system in the following way:
1. A return order is created with / without reference to the Sales Order or Invoice against which the complaint is being made.
2. A Billing block shall be maintained in the Returns Order.
3. On receiving the returned material, a
‘returns delivery’ shall be created and ‘Post Goods Issue’ is performed which brings back into any one of the following (ISPAT’s) stock.
Block stock returns
Unrestricted use stock
Quality Inspection Stock
Block Stock
4. If the complaint is proven genuine, to approve the complaint, the billing block shall be released else a rejection indicator shall be initiated.
5. If the customer returns only some of the material, a credit memo shall be created for even the full amount. Alternatively, a partial credit memo shall be created for certain items even if the customer returns the entire quantity, by reducing him quantity in the Return Order to the quantity to be credited.
6. The Customer shall be supplied
replacement goods by entering a reason for rejection for the appropriate items in the return order. Then a free of charge subsequent delivery with reference to the return order shall be created to send the replacement goods to the customer.
Same as domestic sales.
6.14.12.
5 Free of Charge
Delivery Process should be done as domestic sales Process should be done as domestic sales do -6.14.12.
6
Free of Charge Subsequent
Delivery - do - - do - do
-6.14.12.
7 Debit Memo - do - - do - do
-6.14.12.
8 Credit Memo - do - - do - do
-6.14.13 Others
6.14.13.
1
Recording of shipping Bills for export support sale
In pricing the Export Support Subsidy discount should be activated and made mandatory. Provision of recording shipping bills and or BRC (Bank
realisation certificate) against the sale on export support should be there against each invoice against the bulk despatches in a particular scheduling Agreement / sales order. Also there should be a comparison between the export documents we are supposed to receive and we have actually received.
The provision to be made to indicate the end product for which the sale has to be made. Based on this the conversion ratio should be calculated.
• CR – for 1MT of CR material the raw material (HR) should be 1.085MT.
• GP – for 1MT of GP material the raw material (HR) should be 1.118MT.
Based on the above the system should calculate the quantity for which the shipping bill and BRC is to be received. The customer wise sale status to be made available like the quantity supplied, quantity for which the shipping bill should be received and actual shipping bills received.
There should be a clear classification between other sales and this particular sale.
Export support discount will be mandatory in export support pricing .
Recording of shipping bills against the export support sale and accepted conversion ratio for Shipping bill received against material sold need to be possible through ABAP workaround.
(A/C)