6 Replies Latest reply: Aug 10, 2014 6:25 AM by Biswajit Mohanty RSS

Custom Duty and CVD in CIN

harish venkat
Currently Being Moderated

Hi,

how can we map the custom duty(basic.ecess.h sed cess) and cvd clearing (basic.ecess.h sed cess) in sap and how can we do the condition types in mm condition types and what we have to take access sequence for custom duty and cvd and where we have to give the percentages.

 

Regards,

Harish

  • Re: Custom Duty and CVD in CIN
    Govind Bhaskaran
    Currently Being Moderated

    Hi

     

    Follow the below IMG Process:

     

    T code:  M/06

    IMG : Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Condition Types

     

    Cond Type & Description

     

    JCDB - IN Basic customs

    JCDS - IN Special customs

    JCV1 - IN CVD

    JECV - Educational Cess On CVD   ( Counter Vailing Duty )

    JEDB - Customs Edu. Cess

    JADC - Add Customs Duty

     

    SAP R/3 Standard system is delivered with two India specific pricing procedures JIMPOR u2013 IN: Purchase for Imported materials and JRM000 - IN: Purchasing for Domestic materials procurement process along with relevant condition types there in.  These procedures have been copied to create new pricing procedures.  It is advised that the users copy the standard pricing procedures for creating any new ones.

     

    Check & Create the above Cond Type and assign with above pricing procedures.

     

    Calculation Schema :

    T code:  M/06

    IMG : Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Calculation Schema

     

    Select JIMPORT - IN

     

    Check & add the above COND TYPES and Acct Key (FR3 & FR4)

     

    Define Schema Group :

    IMG : Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Schema Group

    Assign Import Vendor Group;  P.Org Group; Pur Org etc.,

     

     

    Define Schema Determination:

    IMG : Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Schema Determination

    Assing Scheme Grp P.Org -  Sch. Grp Vendor - Pricing Procedure

     

    Defining Document Type YIPO for Import Purchase Order:

    IMG : Materials Management > Purchasing > Purchase Order > Define Doc Types

    Copy the order type NB Standard PO. to  YIPO Import PO Doc Type for the Import Procurement

    Choose the document type NB and copy (F6).

    Enter the new type YIPO and the document type description Import PO Doc Type.

    Choose Enter.

    Confirm the question about objects to be copied with Only copy Entry

    The three dependent entries should be copied with the following entries:

     

    Field Name - User Action and Values

    Type - YIPO

    Doc. type description - Import PO Doc Type

    Item number interval - 10 (Check this Number interval)

    Number range in the case of internal number assignment - 45 (Check & Assign)

    Number range in the case of external number assignment - 41 (Check & Assign)

    Update group for statistics update - SAP

    Field selection key - NBF

     

    Defining Allowed Item Categories:

    Choose the line created for item category YIPO, double-click on Allowed item categories, and check the New entries

    Allowed item categories for type YIPO

     

    Field Name - User Action and Values

    Item category

    Text item category - Standard

     

    Link Purchase Requisition-Document Type:

    Choose the line created for item category YIPO, double-click on Link purchase requisition, and check the make following entries

    Field Name - User Action and Values

    Document type - NB

    Description - Purchase requisition

    Item category in Ref document - No entry

    Descr. Item Cat Ref. Doc - Standard

    Item category in Current document - No entry

    Descr. Item Cat Curr. Doc - Standard

     

    Maintaining output Condition Records: Purchase Order :

     

    On screen Create Output u2013 Condition Records: Purchase Order you will get Output Type field, in put the value NEU in the field and choose Enter

    After choosing system will give a popup screen with three radio buttons; choose Purchasing Output Determination: Document Type the third icon.

    Select Doc Type : YIPO & Enter the following values will be default:

     

    PartF - VN

    Medium - 1

    Date/time - 3

    Select this line item and  Choose Communication icon

     

    Output Device - Give appropriate Pinter Name

     

    Choose Enter and Save

     

    After finishing the above Maintain Material &  Chapeter ID Combination:  T.Code: J1ID

    Material-Plant-Chapter ID-Material Type-GR X ref-Decl Date

    Material linked to Chapter ID

     

    Maintain CENVATE Determination - T.Code: J1ID

    Chose CENVATE Determination

    Plant-Inpute Mat - Output Mat - X - Int Date

     

    Maintaine Tax details of Vendor (J1ID)

     

    After completing the above process Create PO and test

     

    Hope that it will help you

     

    Regards,

    GB

  • Re: Custom Duty and CVD in CIN
    Govind Bhaskaran
    Currently Being Moderated

    CVD Clearing

     

    CVD stands for Countervailing Duty. It is a form of excise duty imposed on imports that are subsidized in the country where they are manufactured.Countervailing duty (also known as CVD) is intended to make the imports more expensive, thereby redressing any competitive advantage they might have over goods produced locally.Unlike other forms of customs duties, such as basic customs duty or special customs duty, CVD paid on imports can be credited to CENVAT account.

     

    The system handles CVD using a condition type for planned delivery costs. Specify which condition type to use in Customizing for Logistics – General, by choosing Taxes on Goods Movements - India - Basic Settings - Determination of Excise Duty - Excise Defaults

     

    A CVD Clearing Account is maintained for the maintainence of CVD in SAP.

     

    Process Flow for CVD Clearing

     

    1. Create a purchase order for the goods that are needed and send it to the vendor. For each material one will have to pay CVD on when it comes through customs, enter the CVD as a pricing condition.

     

    2.The vendor ships the goods - When the goods arrive in India, they go through customs. The customs officers issue a bill of entry for the goods, which is in effect an invoice for the CVD on the goods. Once they have inspected the goods, they send them on to us

     

    3.The goods arrive at your plant, together with the bill of entry. In order to record the bill of entry in the system:

    The excise clerk enters an invoice for the bill of entry

    In Accounts Payable (FI-AP), the system creates a new vendor item for the CVD at the customs office. The item is offset to the CVD clearing account.

     

    He then captures an excise invoice for the bill of entry

    The warehouseman posts the goods receipt.

    The excise supervisor posts the excise invoice.

    The excise clerk enters the vendor invoice for the materials, following the standard procedure.

     

    The A/c Entry passed are

     

    Excise Duty Dr

    CVD Clearing A/c Cr

     

    Hope that the above information is useful to you.

     

    Regards,

    GB

  • Re: Custom Duty and CVD in CIN
    Biswajit Mohanty
    Currently Being Moderated

    Hi ,

     

    Can anyone please tell me why two different pricing procedures are required for import & domestic procurement in India.

     

    Thanks & Regards,

    BIsu

Actions