Procurement of Imported Materials – Business Process Procedure
Procurement of Imported Materials
Purpose
This process Procurement of Imported Materials shows you how to handle the Countervailing
duty (CVD) on imports, which is levied in place of excise duty. Unlike other forms of customs
duties, such as basic customs duty or special customs duty, you can credit CVD paid on imports
to your CENVAT account.
Prerequisites
The following scenario specific master data must be created for operation of this building block
and subsequent dependent building blocks.
• Material Master record
(Refer User Manual – Procurement of Stock Materials (Domestic)
• Vendor Master record
Ensure that GR based IV is not selected in Purchasing Data.
(Refer User Manual – Procurement of Stock Materials (Domestic)
• CIN Master Data
Creating Contract
Use
Contracts and proposals safeguard both the freelancer AND the client. A proposal spells out the
details of what is to be done, deadlines, fees, covered expenses, payment dates, etc. Landing a
contract is the goal of a proposal - the contract is the legal agreement. Writers and editors will
often sign contracts that include all the details; proposals aren't used as often in the publishing
world as they are in other industries.
Remember - signed contracts are legally binding documents. By detailing all information, there
is no argument later about who said what when. But be sure you understand what you are
signing. If you aren't sure, get legal advice.
Prerequisites
In the case of Import, The Quantity contract will be created.
Procedure
1.
Access the transaction choosing one of the following navigation options:
SAP R/3 menu
Logistics Materials Management Purchasing
Outline Agreement ContractVendor/Supplying Plant
Known
Enter Vendor Code
• Enter Agreement Type i.e ZQTY
• Agreement Date
• Enter Purchase Organization i.e. 9999 • Purchase Group
Enter Validity End Date
Enter Payment Terms
Define Tax Code i.e Z1
Define under & over delivery tol.
Result
Contract is created.
Example
Creating Purchase Order
Use
A purchase order is a legal document used to record an individual purchase with the vendor. It
also provides the vendor with a reference document to link to goods receipt and invoice
verification processes. The purchase order is a commitment to a vendor for a given material, in a
specified quantity at a predetermined price and delivery date.
Prerequisites
Before starting the process, please ensure the following information:
•
Commissioner of Customs, CHA, Surveyor etc are created as domestic vendor,.
•
In master record of main imported vendor GR-based invoice verification tick should not
be there on Purchasing Data screen of vendor master. And Schema group, Vendor is filled with
schema group Import.
•
These are basic master data changes with respect to this process only.
For all purchase order a release procedure is applied.
Procedure
2.
Access the transaction choosing one of the following navigation options:
SAP R/3 menu
Logistics Materials Management Purchasing
Purchase Order CreateVendor/Supplying Plant
Known
Transaction code
ME21N
Click on Document Overview On
Click on the Selection Variant
Click theContracts to create the PO as per reference and then click the adopt button
Select the document type
Reference of Contract Number which is send by the vendor will be shown in the
PO---Communication----Your Reference Column.
Enter Purchase
Organization & Purchase Group & Plant
Enter Net Price
Enter Invoice & enter the tax code
Click the condition button to maintain conditions
Change the vendor if it is different
2.4 Message Output
2.4.1 Use
A Purchase Order needs to be printed for transmitting to vendor.
2.4.2 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics Materials Management Purchasing Purchase
Order Messages Print/Transmit
Transaction code ME9F
2. On the Message Output screen, make the following entries
3. Choose to Execute.
Choose Output Message and/or Choose Display Message and/or Choose Message Detail and/or Choose Trial Printout.
CAPTURING BILL OF ENTRY
Use
In this process of Logistics Invoice Verification all the Incoming Invoices are verified
in terms of their content, prices and arithmetic. When the invoice is posted, the
invoice data is saved in the system. The system updates the data saved in the invoice
documents in Materials Management and Financial Accounting.
Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu
Logistics Materials Management Logistics invoice
Verification Document Entry Enter Invoice
Transaction code
MIRO
2. If you are opening for the first time this transaction, system will ask for Company Code,
please give 1000 to go inside the transaction.
3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:
Choose Planned Delivery Costs Enter Invoice Date
Enter Invoice Party
Enter the Amounts of the Customs Duties Manually in the Amount Column with referring to PO.
Enter PO No.
Field name Description R/ O / C User action and values Comment
Transaction Invoice R Select Invoice from drop
down list
Header Data Header data of Invoice R Defaulted by system Basic tab Basic information tab R Select basic information tab
to give initial information
Invoice Date Invoice Date R Enter the Vendor invoice
date
Reference Invoice reference O Enter the vendor invoice
reference For Example USERMANUAL
Posting date Posting Date R Enter the posting date of
document
System will give current date as default
Amount Invoice Amount R Enter invoice gross amount
including taxes and duties 39.80
Amount mentioned is only an example
Currency R Enter the currency in which
the bill is presented by vendor, if not entered by user system will default the document currency from purchase order
USD Calculate tax Check box calculate
tax
O Check this tick box, system will calculate tax amount
Tax code R Select the tax code from
drop down list V0
Bus.place/se ctn
Business place or section code
R Enter section code if Tax deduction for source is active for this vendor
Leave blank for this process
defaulted from purchase order
Due on Payment due on O Will be calculated by
system
Grayed out
Discount Cash discount O Enter if cash discount is
offered by vendor Purchase order /
Schedule Agreement
R Select Purchase order / Schedule Agreement in the reference document category from drop down list Defaulted for user PO Reference Purchase order number
R Enter the first purchase order number generated above
Details Tab
Invoice Party Vendor Code R Enter the vendor code
4. Choose Enter to complete the document feeding part.
5. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed.
Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color.
6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.
7. Choose Display Currency which will lead to small pop-up window having the company code currency and Document Currency, position the cursor on the INR to convert to Document Currency and press the details button.
Result
Logistics Invoice verification document is posted.
Example
Document no. 5105600168 created
Above MIRO Step will be followed for the capturing the Invoice of other parties for e.g
CHA Charges, Inspection Agency etc.
Goods Receipt for Imported Purchase Order
Use
Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods movement is entered into the system referencing this PO and a goods receipt material document is posted. Appropriate general ledger accounts are also posted and stocks are updated.
Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics Materials Management Inventory Management
Goods Movement Goods Receipt For Purchase Order PO Number Known
Transaction code MIGO
2. On the Goods Receipt Purchase Order screen, make the following entries:
Field name Description R/ O / C User action and values Comment
Goods Receipt
Goods Receipt R Select from drop down list
for action Inbound
Delivery
Purchase Order R Enter the Purchase Order
No. Generated above 4540000010 Movement Type 101 Plant Kandla 5001 Enter
Note: Material will be received at the Kandla Port
Enter Qty of Material according to Draft Survey Enter QTY of Material according to Bill of LadingStock Transfer Order from Port to Plant:
Procedure
Access the transaction choosing one of the following navigation options:
SAP R/3 menu
Logistics Materials Management Purchasing
Purchase Order CreateVendor/Supplying Plant
Known
Transaction code
ME21N
Enter Supplying Plant Enter Quantity Enter Receiving Plant & Storage Location Enter Conditions e.g. Railway Freight, Insurance etc and change the vendor if it is different Enter Document Type ZSTM
Goods Issue from Port to Plant with Reference to STO:
Access the transaction choosing one of the following navigation options:
SAP R/3 menu
Logistics Materials Management
Inventory
Management Goods Movement Goods Receipt For
Purchase Order PO Number Known
Transaction code
MIGO
Enter Stock Transfer
Enter STO No
GOODS RECEIVE AT PLANT
Access the transaction choosing one of the following navigation options:
SAP R/3 menu
Logistics Materials Management
Inventory
Management Goods Movement Goods Receipt For
Purchase Order PO Number Known
Transaction code
MIGO
Actual qty received at plant
No Excise Capture during MIGO & MT is 101
Enter RR No. Goods Receipt
Document type & enter STO no.
Capturing of Excise in Plant
Transaction code: J1IH
For Raw Sugar Imported:
Click on Additional excise
Enter Bill of Entry No.
• Enter Document Year • Company Code i.e 1000 • Enter Plant
Click on this to enter details Material Number Enter Quantity
Enter excise duties Click on save to post the excise
For PP Bags:
Click on Additional excise Enter Bill of No.• Enter Document Year • Company Code i.e 1000 • Enter Plant
Click on this to enter details Material Number Enter Quantity
Enter excise duties Click on save to post the excise