sd foreign trade
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India SAP CoE, Slide 1
SD2015 SD Foreign Trade v 1.0
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India SAP CoE, Slide 2
Foreign Trade?
Exchange of Goods and Services across the
international boundaries and territories
Significant Share of GDP
Increase in Foreign Trade is basic to Globalization.
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India SAP CoE, Slide 3
SD Foreign Trade
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
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India SAP CoE, Slide 4
SD Foreign Trade
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
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India SAP CoE, Slide 5
Purpose
Manage import and export processes, integrating them efficiently into the
supply chain
Automatically identify licensing requirements for importing and exporting
goods based on current regulations
Simplify reporting with automatic procedures for creating, printing and
submitting declarations.
Determine which of your products qualify for preference handling.
Provide an active interface for sending or retrieving data via internationally
available EDI systems and other electronic media
Update or change data in all relevant foreign trade documents at any time
prior to the final goods issue. Even after you have posted the goods issue,
you can still change data in the invoice
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India SAP CoE, Slide 6
Use Cost Effective
Easy to Use
Integrated with total SAP
system
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India SAP CoE, Slide 7
Challenges
Data
Service
Preference
Processing
Communication
&
Printing
Documentary
Payments
Legal
Control
Periodic
Declarations
General
Processing
Foreign
Trade
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India SAP CoE, Slide 8
SD Foreign Trade
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
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India SAP CoE, Slide 9
Foreign Trade As countries move increasingly toward a global market economy,
businesses become more involved in and influenced by foreign trade. This affects not only the vendor and customer relationship, but that of foreign subsidiaries within a single company. With this opening of market opportunities come regulations, licenses, import tariffs, and an increasing amount of paperwork required by government agencies and other legal entities.
SAPs R/3 Foreign Trade application enables you to:
Manage import and export processes, integrating them efficiently into the supply chain
Automatically identify licensing requirements for importing and exporting goods based on current regulations
Simplify reporting with automatic procedures for creating, printing and submitting declarations
Determine which of your products qualify for preference handling
Provide an active interface for sending or retrieving data via internationally available EDI systems and other electronic media
Update or change data in all relevant foreign trade documents at any time prior to the final goods issue. Even after you have posted the goods issue, you can still change data in the invoice.
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India SAP CoE, Slide 10
Foreign Trade The Foreign Trade/Customs (FT) application component is integrated
with Materials Management for handling imports and with Sales and
Distribution for exports. In the area of documentary payments, it is also
integrated closely with the Financial Accounting application.
The below shows where FT data is integrated into the R/3 environment
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India SAP CoE, Slide 11
Import Processing
This scenario describes the processes involved in importing goods into your
country from a third country. In this sense, a "third country" is defined as the
country of export when no trade agreement exists between your country and the
exporter. In this case, you are responsible for compliance with the import laws of
your own country.
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India SAP CoE, Slide 12
Reasons for Importing Goods There are three primary reasons for importing goods.
1. Trade 2.Production 3.Transit 4.Trade
There are three main reasons why you may want to import for trade purposes:
Comparative advantage Some foreign manufacturers can make products more
cheaply.
Availability Some products are only available in foreign markets.
Marketability A product may be new and you want to market it in your entire
country or in a region of your country.
Production
It is sometimes advantageous to import raw or semi-finished materials to be used in
a manufacturing process.
Transit
Foreign merchandise with the status "in transit" is exactly that passing through
your country on the way to another. At the plant level in the SAP System, this
refers to a goods receipt that immediately becomes a goods issue to a country
other than the location of your plant. A carnet TIR (document which allows
passage of foreign merchandise through a customs territory) may be required for
the transfer of goods under bond in your country.
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India SAP CoE, Slide 13
Import Process You (the importer) first request a quote
(generally, EXW or CIF) for the merchandise. This
may or may not include transportation and
insurance costs.
You prepare a purchase order based on the offer
(quotation) received from the exporter.
The exporter creates a sales order based on your
purchase order and sends it to you.
(Optional) The exporter creates an advanced
shipping notification to inform you of the date
and quantities to be delivered.
The exporter ships the merchandise.
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India SAP CoE, Slide 14
Import Process (continued)
Also at the time of shipment, the exporter
provides you with required documentation
depending upon the terms of sale and your
agreement with the exporter.
Documents may include some or all the following
1. Bills of lading
2. Commercial invoice
3. Export packing list
4. Shipper's Export Declaration (SED) (Required in
the USA for goods valued at $2501 or more)
5. Shipper's Letter of Instructions (SLI) (applies
only to the USA)
6. Single Administrative Document (SAD) (applies
only to the EU)
7. Certificate of Origin
8. Insurance certificates
9. Licenses (when necessary)
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India SAP CoE, Slide 15
Import Process Involving Letter
of Credit You (the importer) first
request a quote for the
merchandise. This may or may
not include transportation and
insurance costs.
You prepare a purchase order
based on the offer received
from the exporter.
The exporter creates a pro
forma invoice and sends it to
you.
You open a letter of credit with
the opening bank in the
country of import.
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India SAP CoE, Slide 16
Import Process Involving Letter
of Credit (continued) This involves advising the bank of the
documents required from the exporter. As
an importer, you not only need the
documents required by customs, but also
the documents that are required by any
other agency regulating your commodity.
These may include
1. Bills of lading
2. Commercial invoice
3. Export packing list
4. Shipper's Export Declaration (SED)
(Required in the USA for goods valued
at $2501 or more)
5. Shipper's Letter of Instructions (SLI)
(applies only to the USA)
6. Single Administrative Document
(SAD) (applies only to the EU)
7. Certificate of Origin
8. Insurance certificates
9. Licenses (when necessary)
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India SAP CoE, Slide 17
Export Processing
This scenario describes the processes involved in exporting goods from your
country to an independent country (third country) where no trade agreement
exists between your country and the importer. In this case, you are responsible
for compliance with the export laws of your own country .
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India SAP CoE, Slide 18
Reasons for Exporting Goods Three primary reasons for exporting goods include
1.Increase profit 2.Consistency in sales profits 3.Extension of the product cycle
Consistency in Sales
Peaks and valleys in the business cycle are inevitable. When the economy of one
country is on an economic downturn, the economy in other nations may be in a
relatively prosperous phase. If you have customers in countries other than your
own, your business profits tend to become more consistent from year to year.
Product Cycle Extension
When you export your product, the end of the product cycle is postponed. When the
market in your own country is saturated, exporting allows you to introduce your
product into other countries.
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India SAP CoE, Slide 19
Export Process The importer first requests a
quotation for the desired
merchandise.
You (the exporter) provide a
quotation for the merchandise to
the importer including costs
based on the terms of sale
requested by the importer
(usually, EXW or CIF).
The importer sends you a
purchase order based on your
offer.
You issue a sales order based on
the purchase order and send it to
the importer.
(Optional) You may also send an
advanced shipping notification to
inform the importer of the exact
date and quantities of
merchandise to be delivered.
You ship the merchandise to the
customer.
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India SAP CoE, Slide 20
Export Process (continued) Also you need to provide
documentation based on the terms
of sale and your agreement with the
importer. Documents may include
some or all the following:
1. Bills of lading
2. Commercial Invoice
3. Export packing list
4. Shipper's Export Declaration (SED)
(Required in the USA for formal
entry valued at $2501 or more)
5. Shipper's Letter of Instructions
(SLI) (applies only to the USA)
6. Single Administrative Document
(SAD) (applies only to the EU)
7. Certificate of Origin
8. Insurance certificates
9. Licenses (when necessary)
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India SAP CoE, Slide 21
Document Requirements Certificate of Origin: The certificate of origin is an official declaration, which certifies the country in
which a commodity originated or was
manufactured. In most cases, the importer and
exporter must keep this document on file and
provide it to the government only if requested.
Shipper's Export Declaration (SED): In the USA, the SED is only required for shipments valued
at more than US$ 2500 (formal entry). If you are
shipping goods out of the USA, the SED does not
go to the importer. You must send it to the US
Government before the shipment leaves the US.
With the Automated Export System (AES), you can
file this document electronically.
Export vessel movement summary sheet: If you export by ocean from the USA, you must file
this document with the Customs Service.
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India SAP CoE, Slide 22
Foreign Trade Data in Master
Records Master data relevant to foreign trade that is used throughout the entire
logistics chain in Materials Management (MM) and Sales and Distribution (SD)
documents.
Material Master Record
To go to a material master record from the SAP standard menu, choose
Logistics Materials Management Material Master Material.
You can display or enter data relevant to foreign trade in the following views of
the material master record:
Basic data 1
Base unit of measure
Material group
Division
Net weight
Gross weight
Weight unit
Sales organization data 1 and 2
Tax category/classification
Sales: General/Plant Data
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India SAP CoE, Slide 23
Foreign Trade Data in Master
Records (continued) Transportation group
Loading group
Foreign Trade: Export data
Commodity code (or Import code number)
Country of Origin
Region of Origin
Legal (export) control information
Preference information (when applicable)
Foreign Trade: Import data
Import Code number (or commodity code)
Export/import group (a grouping of similar materials for
export or import transactions)
Country of origin
Region of origin
Accounting 1
Valuation class
Price control
Price unit
Moving average price
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India SAP CoE, Slide 24
Foreign Trade Data in Master
Records (continued) Customer Master Record
To go to a customer master record from the SAP standard menu, choose
Logistics Sales and distribution Business partners Sold-to-party.
You can maintain data relevant to foreign trade data on the following
screens of the customer master record:
General data
City
Country
Region
Transportation zone
Postal code
Language
VAT registration number
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India SAP CoE, Slide 25
The customers country helps indicate export transactions in sales and
distribution (SD) documents. You need the customers region for declarations to
the authorities.
To go to the Shipping and Billing information screens from the General data
screen, choose Goto Sales area data.
Shipping
Shipping conditions
Delivering plant
Billing
INCOTERMS
Terms of payment
Payment guarantee procedures
Licenses (legal control data)
Foreign Trade Data in Master
Records (continued)
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India SAP CoE, Slide 26
Preference Handling There are several possibilities for qualifying your
product as originating in your country or economic zone.
For example, these methods include:
Tariff shift (rules of origin)
Tariff shifting means you apply enough labor to the
product or its components to change its commodity
code.
De minimus rule (maximum of 7% non-originating
goods)
The de minimus rule allows a product to qualify for
preference if no more than 7% of the product is
composed of non-originating goods.
Certificate of origin (vendor declaration)
Your vendors give you a document certifying that the
product or its components originate in your country or
economic zone.
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India SAP CoE, Slide 27
Customs Data This task enables you to transfer foreign trade data objects from your
database to another system. Currently these objects include the following
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India SAP CoE, Slide 28
SD Foreign Trade
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
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India SAP CoE, Slide 29
Customizing
IMG Sales and Distribution Foreign Trade/Customs
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India SAP CoE, Slide 30
Incompleteness Schemas for
Foreign Trade Data
Sales and Distribution Foreign Trade/Customs Control Foreign
Trade Data in MM and SD Documents Incompleteness Schemas for
Foreign Trade Data
In this IMG activity, you
define the incompletion
procedures that you want
to use at header and/or
item level.
You assign valid foreign
trade fields to each
incompletion procedure.
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India SAP CoE, Slide 31
Foreign Trade Data in MM and SD
Documents
Sales and Distribution Foreign Trade/Customs Control Foreign
Trade Data in MM and SD Documents Foreign Trade Data in MM
and SD Documents
Assign the relevant
incompletion procedure for
header and/or item data to
the import and export
country.
You also define how the
system reacts when data is
incomplete.
Furthermore, you define in
the "consistency check"
section whether the system
only allows valid
combinations of modes of
transport and customs
offices during document
processing.
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India SAP CoE, Slide 32
Import Screens In Purchasing
Document
Sales and Distribution Foreign Trade/Customs Control Foreign
Trade Data in MM and SD Documents Import Screens In Purchasing
Document
Set the system to propose
import screens for the
subsequent maintenance
of purchase orders and
purchasing outline
agreements
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India SAP CoE, Slide 33
Define Default Business Type (SD)
Sales and Distribution Foreign Trade/Customs Basic Data for
Foreign Trade Define Business Transaction Types And Default
Value Define Default Business Type (SD)
Define the business
transaction type designated
by the authorities and assign
it as the business
transaction type proposal for
Sales and Distribution (SD)
as well as Materials
Management (MM)
documents
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India SAP CoE, Slide 34
Define Default Export Procedure
Sales and Distribution Foreign Trade/Customs Basic Data
for Foreign Trade Define Procedures and Default Value
Define procedure default
Define import/export procedures and
determine defaults for Sales and
Distribution (SD) and Materials
Management (MM).
SD Export/Dispatch:
-------------------
The proposal depends on the
following criteria:
Country
Sales organization
Distribution channel
Division
Export/import material group
Item category
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India SAP CoE, Slide 35
Default Values For Foreign Trade
Header Data
Sales and Distribution Foreign Trade/Customs Transportation
Data Default Values For Foreign Trade Header Data
Define default values for
foreign trade header
data. Note that this
object only supplements
vendor master data. It
does not overwrite it.
If you maintain mode of
transport '4' in the
vendor master and
mode of transport '3' in
this object, the system
will propose mode of
transport '4' in the
materials management
document
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India SAP CoE, Slide 36
Allowed Business Transaction Type
Sales and Distribution Foreign Trade/Customs Basic Data for Foreign
Trade Define Combinations Allowed: Business Transaction Type - Procedure
Define the combinations of business Transaction types and procedures that are
permitted
Business Transaction Type
The business transaction type classifies the type of business transaction which is
performed. In the European Union (EU), this information is required for the
reporting of import and export data to INTRASTAT. Additionally, it is used by the
system during export control
Export/Import Procedure Code
The export/import procedure code for foreign trade uniquely identifies an
export/import procedure. For business transactions in the EU, the procedure code
is part of the information that you submit in monthly reports to INTRASTAT.
The system proposes procedure codes, based on the country of export/import, the
sales area, material groups and item categories. For example, the procedure code
can distinguish between goods that are shipped temporarily for further
manufacture by a subcontractor and goods that are shipped to their final
destination after processing by a subcontractor.
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India SAP CoE, Slide 37
Material Master Data
Commodity
Code/Import Code
Number for Foreign
Trade
Transaction Code : MM03
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India SAP CoE, Slide 38
Customer Master Data
Use
In Customizing for Export Licenses you can
determine that certain license types will be
used for customers with mainly military use.
When defining export licenses, the system can
assign license types valid for military use only
to those customers that have been marked as
mainly for military use.
Transaction Code : XD03
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India SAP CoE, Slide 39
Periodic Declarations Foreign Trade's Cockpit for Periodic Declarations is designed to
provide you with a quick, easy-to-use overview of the most
important functions in the area of declarations to the customs
authorities.
To go to the Cockpit for Periodic Declarations from the SAP main
menu, choose Logistics Sales and Distribution (or Materials
Management) Foreign Trade/Customs Periodic Declarations
Cockpit Periodic Declarations.
Choose Sales and Distribution (or Materials Management
Purchasing) Foreign Trade/Customs Periodic Declarations
Screen Section Function Operations Create periodic customs declarations
Maintain declaration data
Perform archiving tasks
Monitoring Display and update foreign trade data in material
master records
Goods catalog Create and display goods catalogs
Settings Make relevant settings in the Implementation
Guide (IMG)
Additional Declaration Germany Create declaration for foreign trade in Germany
involving mineral oil products
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India SAP CoE, Slide 40
Prohibitions And Restrictions Foreign Trade's Legal Control
Cockpit is designed to provide you
with a quick, easy-to-use overview
of the most important functions in
the area of Legal Control. These
functions assist you in checking
your business transactions for
compliance with several foreign
trade laws and regulations (for
example, the export of weapons-
related products).
To go to the Legal Control Cockpit
from the SAP main menu, choose
Logistics Sales and distribution
(or Materials management)
Foreign Trade/Customs
Prohibitions and Restrictions
Cockpit Legal Control.
Licenses Creation, display or
modification of
license master
records
License data Assignment of
licenses to
documents
Alert reporting Display of sales
documents and
licenses
Controlling Check of customer
master records
and material
master records
Simulation Simulation of Legal
Control
transactions
Settings Check of
Customizing
settings
Declarations Disk creation for
Export Office
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India SAP CoE, Slide 41
SD Foreign Trade
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
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India SAP CoE, Slide 42
LetMe
MM01 Maintain Material Master
XD01 Maintain Customer Master
VI29 Incompleteness Schemas for Foreign Trade Data
VI49 Foreign Trade Data in MM and SD Documents
VI95 Default Values For Foreign Trade Header Data
VI52 Define Forms of Payment Guarantee
VX11N Create a Financial Document to the Customer
Transactions
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India SAP CoE, Slide 43
SD Foreign Trade
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
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India SAP CoE, Slide 44
Additional Info
http://help.sap.com/saphelp_erp2004/helpdata/EN/d8/2585347860ea
35e10000009b38f83b/frameset.htm
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