10 Replies Latest reply: Nov 22, 2010 12:54 PM by Colm Gavin RSS

PO Creation of free goods for intrastat reporting

Colm Gavin
Currently Being Moderated

All,

 

Due to intrastat reporting restrictions, when we are creating a PO with a free good we need to mark the item as "Free Good" on the item overview, and set the "Business Transaction type" to 41 on the "Origin / Destination / Business" tab of the "Import" tab.

 

However, we also need to set the "Statistical value" on the "Decleration Values" tab but this field is greyed out.

 

The help message says:

The system determines statistical values on the basis of condition records with condition types GRWR and GWLB (subcontracting).

 

However it does not say where I can set this value. Does anyone know where I can set this value per material?

 

Many Thanks,

Colm

  • Re: PO Creation of free goods for intrastat reporting
    Rob Burbank
    Currently Being Moderated

    Moderator message - you just marked a number of questions as "solved" but gave a meaningless response to each of "not solved". this brought up all of your old posts to the top of the forum list and pushed a lot of current ones down. I got rid of as many as I could. My question is - if you ask all of these questions but don't get a satisfactory answer, why do you continue to ask?? Rob

    • Re: PO Creation of free goods for intrastat reporting
      Colm Gavin
      Currently Being Moderated

      Rob,

       

      My sincerest apologies, it was only when I saw you rejecting all of my questions that I realised I had done wrong. I thought I was being a good community member by closing off all of my open calls that hadnu2019t received an answer. A lot of the questions I closed off were from a couple of years back and I thought I was better off marking them as closed so that other members wouldnu2019t waste their time reading through them.

       

      I continue to ask questions on the forum because in the main I get invaluable help and would be completely lost with some issues.

       

      Once again my sincerest apologies for wasting your time, in future should I just leave the posts open?

  • Re: PO Creation of free goods for intrastat reporting
    Jürgen L
    Currently Being Moderated

    conditions for GRWR are maintained in MEK1.

    SAP standard gives you 2 access keys: by Incoterm, by plant/incoterm.

    Here you enter a percentage.

    e.g for Incoterm EXW the percedntage would be above 100, as you have to pay freigt from your vendors plant to the border

     

    Based on the percentage, SAP will then calculate the GRWR value.

    • Re: PO Creation of free goods for intrastat reporting
      Colm Gavin
      Currently Being Moderated

      Jürgen,

       

      Many thanks for your response. It was very helpful, however I have a follow up question.

       

      When I enter in the GRWR value, it asks for a percentage, I have set that percentage at 85% which is what the business have asked it to be, but my question is, what is this a percentage of? When I am creating the PO it still says 0 in the statistical value so I am presuming I need to give this material a value somewhere? However it can not be in the material master because this is a free good and it's Moving Price is set to 0 in the material master.

       

      • Re: PO Creation of free goods for intrastat reporting
        Jürgen L
        Currently Being Moderated

        85 % of 0 is 0. this is just mathematics.

         

        if you have to enter a statistical value for free goods, then you may need to do this either manually in VEFU (before you run INTRASTAT) or you may need to influence this manually in the PO price conditions.

        • Re: PO Creation of free goods for intrastat reporting
          Colm Gavin
          Currently Being Moderated

          Yes I'm aware that 85% of 0 is 0

           

          My point is that this material is a free material because we get it free of charge from our subcontractor. Therefore it's price on the PO is 0 and therefore it's moving average price on the material master is 0.

           

          However, the EU want us to enter a statistical value for this material, SAP have provided us with the ability to mark the stock as subcontracting stock by marking the business transaction type as 41  on the "Origin / Destination / Business" tab of the "Import" tab.

           

          So SAP is aware that we are marking this stock as free stock, it has a value of 0, yet won't let us enter a statistical value for this material.

           

          You have provided me with VEFU transaction which appears to be exctly what I want but the statistical value field is greyed out.

           

          The steps I used are:

          VEFU

          Company Code

          Plant

          INTRASTAT ID (Automatically Populated)

          Currency

          Material

           

          But when I enter in all that information I still can't enter the statistical value?

          • Re: PO Creation of free goods for intrastat reporting
            Jürgen L
            Currently Being Moderated

            Can you explain why subcontracting is free of charge, I have never seen somebody doing some work without charging for it.

            are you talking about the delivery of the materials sent to your subcontractor or the finished materials that you get back?

             

            Usually the statistical value field can be maintained in VEFU. But I guess it interacts with the free of charge indicator in your case.

             

            I just like to give you some explanation from the statistical office:

            u201CProcessing under contractu201D covers operations (treatment/processing, mounting, assembly, enhancement,

            renovation, etc.) resulting in the production of new or really improved goods on the basis of intermediate

            materials provided free of charge by the commissioning party. Depending on whether processing under

            contract is done within the country or abroad, the relevant terms used are u201Cinwardu201D and u201Coutwardu201D

            processing under contract.

            u201CProcessing under contractu201C in the context of intra-Community trade statistics covers intra-Community

            cross-border movements of goods, provided the finished products produced on the basis of the

            intermediate products provided through cross-border transactions will later leave the country of

            manufacture (dispatch), being either returned to the original country of consignment (arrival; nature of

            transaction u201C41u201C or u201C51u201C) or moved to another country (nature of transaction u201C42u201D or u201C52u201C).

            What must be declared is both the cross-border movement of the (free) intermediate materials and the

            subsequent (cross-border) return of the finished products.

            (Note: Processing performed by the processor on own account is not processing under contract but is

            generally covered as purchase/sale (nature of transaction u201C11u201D.)

            For the declaration of the intermediate products provided free of charge (nature of transaction u201C41u201D), a

            statistical value has to be indicated that corresponds to a selling price customary in the market (free

            German border); in case of doubt a careful estimate should be used. When declaring the finished products

            (nature of transaction u201C51u201D), the invoiced amount to be indicated is the costs of wage, material, transport

            and insurance as invoiced by the contractor; for the statistical value, the statistical value of the

            intermediate materials (provided free of charge) must be included, too.

            (Note: Intermediate products returned to the commissioning party without treatment should be declared

            under nature of transaction u201C51u201D, entering the value originally indicated.)

            If, however, the commissioning party provides only parts that are insignificant in terms of function or value

            (e.g. labels, screws, etc.), then there is no processing under contract. In those cases, such provision of

            materials that is negligible in statistical terms is exempted from declaration for intra-Community trade

            statistics. For the finished product supplied on a cross-border basis, a sale or purchase (nature of

            transaction u201C11u201D) is regularly assumed, with the value of the materials provided free of charge by the

            commissioning party exceptionally not being included when determining the value of the finished

            products.

            Also, there is no processing under contract if the contract work performed at the goods provided consists

            of just simple activities (e.g. simple packaging, ironing, etc.). In such cases the goods exported or

            imported temporarily within that scope are not covered statistically.

             

            Examples:

            1. A sports car is moved temporarily from Italy to Germany for tuning activities (e.g. power increase,

            car body modifications). What is invoiced in addition to the labour costs is some car parts

            purchased by the domestic contractor.

            As the sports car is u201Creally improvedu201D by the work performed, this is u201Cprocessing under contractu201D,

            which has to be declared under nature of transaction u201C41u201D for arrival and u201C51u201D for (re)dispatch.

            2. For the production of a car in the Czech Republic, the engine gearbox unit and some other parts are

            provided free of charge by the commissioning party located in Germany. For the import of the

            complete car to Germany, the foreign producer invoices the car without the value of the engine

            gearbox unit.

            This is u201Cprocessingu201D of important components (both in terms of value and function) in connection

            with the production of a u201Cnew goodu201D (car), i.e. the transaction u2013 by definition u2013 must be declared as

            u201Cprocessing under contractu201D both for dispatch and for re-arrival.

            3. For the production of an off-road vehicle produced in Austria, the German commissioning party

            provides the company emblem free of charge. When the complete vehicle is imported to Germany,

            the foreign producer of the off-road vehicle invoices the vehicle without the value of the company

            emblem mounted on the vehicle.

            Although the components provided are u201Cprocessedu201D, they are insignificant parts (company

            emblem) both in terms of function and value, so that this is not u201Cprocessing under contractu201D but a

            purchase (nature of transaction u201C11u201D) of a vehicle.

            4. An older car is temporarily moved to Poland to restore the paint (washing, polishing and

            conserving).

            This is not u201Cprocessing under contractu201D in the context of intra-Community trade statistics because

            the work performed consists of just simple activities. As this is u201Ctemporary useu201D, the cross-border

            movement of the vehicle is exempted from declaration.

             

            • Re: PO Creation of free goods for intrastat reporting
              Sergio Marques
              Currently Being Moderated

              Hello everyone,

               

              I've found this thread and specifically Jurgen L. post very useful regarding my issue.

               

              I am actually performing maintanance activities and there is this new business process, in everything similar to what you have described, but nevertheless I have been searching for the correct understandind of this process here and I haven't found.

               

              So i will describe the process hoping that someone can give me some hint:

               

              Vendor A

              Customer B

              Raw Material R

              Finish Product P

              Service S

               

              1. So we ( Vendor A ) receive raw material from our Customer B (mov.type 501)

               

              2. We ( Vendor A ) with a production order process the Raw material R into Finish Product P.

               

              3. We ( vendor A ) send the Finish Product back to the Customer B.

               

              4. We ( Vendor A ) then issue an invoice for the Service S to the Customer B.

               

              5. It can occur that we Vendor A, can send back the Raw material R which was not manufactured back to Customer B (with a mov type.)

               

              __So thiswas the scenario and how the process is beeing done, and the client understanding is:_

               

              - As far as i understood, (please correct me if i am wrong)  the Raw Material R must be declared (Quantity and statistic value) in Purchasing Intrastat, in the transactions where the Vendor A receives the raw material and as well in the case that they send it back to Customer B.

               

              - Regarding the Invoice From the Vendor A to Customer B, the Raw Material R is incorporated in the Finish Product P, therefore I've been told that, the Statistic Value determined in the invoice in this situation has to include the cost value of the raw materials.

               

              My issues in MM are the following:

               

              1 - If Raw Material R is non valuated, how can i maintain its statistic value to be declared, in inbound as well outbound? as an Info-record?

               

              My issues in SD are the following:

               

              1 - If the Statistic Value GRWR can be for example 102% calculated over the net value, and if the cost value of Raw Materials R are to be included, so i would have to add them somehow to the statistic value.

               

              In this case the question comes up, where do i maintain the value of the raw materials R, and how to add it to the statistic value automatically ?

               

              Feedback would be highly appreciated!!

               

              Thank you in advance.

               

              Edited by: SCMM on Nov 25, 2011 2:11 AM

            • Re: PO Creation of free goods for intrastat reporting
              Sergio Marques
              Currently Being Moderated

              Just forgot to add that the client had SD Intrastat implemented and MM Intrastat not implemented!

               

              Edited by: SCMM on Nov 25, 2011 2:11 AM

  • Re: PO Creation of free goods for intrastat reporting
    Colm Gavin
    Currently Being Moderated

    Just an update on this, I have logged a call with SAP and am waiting to hear back from them. I will update here as soon as I do.

  • Re: PO Creation of free goods for intrastat reporting
    Colm Gavin
    Currently Being Moderated

    On the SD side

    ***************

    It is a common customer query that free of charge items cannot be

    provided to the authorities with a value of 0.00 to 1 but must

    reflectthe real cost of the goods. This interpretation differs

    throughout the various countries throughout the EU.

     

    The solution is outlined in the attached note 33258.

     

    You have to have a price in the item to be able to fill the

    statisticalvalue. You therefore have to price the item fully and includea 100%discount to reduce the actual item value to zero.

     

    This has the effect of providing the VBRP-NETWR required to

    calculatedthe statistical value. See note 33258 for details.

     

    This is the solution how to handle free of charge deliveries.

     

    ***************************************************************

     

    On the MM- side:

    ***************

    We have in MM-processing no pricing, so you can use the userexit

    EXIT_SAPLV50G_002 for the determination of the statistical value. Pleasehave a look at the attached note 303984. Without a pricing we have no

    way to determine the value from our programs automatically in

    the standard.

     

    You could use the userexit EXIT_SAPLV50G_002 (note 303984) in order

    to determine the value. This is the ony possibility because we have

    no chance to determine the statistical value without a pricing

    procedure in our programs automatically.

     

    As a second proposal you can maintain for the free of charge items the

    statistical value manually via the transaction VEFU. The first step is

    the selection via transaction MEIS (ENPA) and afterwards manual

    maintenance with VEFU.

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