Proforma invoice for Inbound Delivery

[former_member630201]

Hi,

We have the need to create a proforma invoice (in the way as a packing list but valuated) to use its output at customs for import. We use as a basis the inbound delivery of loaded goods.

If I go to VF01 and use billing type F8 it indicates, F8 can't be use with document EL (inbound delivery). Same happens with F5.

Does anyone have any idea what process could be followed to obtain this kind of document?

Thanks

[Jelena · Accepted solution]

Why would you have a proforma for inbound delivery? Whom are you going to bill? Yourself? Shouldn't the sender issue a proforma in this case? I'm quite confused by this question...

That aside, proforma is not a financial document anyway and if you only need a piece of paper then you can just add a custom output to the delivery.

[former_member630201 · Accepted solution]

The purpose of doing it this way is because it needs to be valuated. The delivery only has quantities, no value.

Can this custom output be used with values?

The purpose is not billing anyone, just being able to create this kind of documentation to be sent at port of arrival, as the one in charge to provide documentation at customs is the one buying, not the vendor. This is affected by incoterm FOB, as once on board, the stock becomes ours.

[VeselinaPeykova · Accepted solution]

I completely agree with Jelena - there is probably some misunderstanding.

I wonder if this is because some companies use so-called customs agents (third party, which you pay to process the customs documents on your behalf).

In such case there could be two options - either the supplier provides the documents to your clearing agent directly (if you have agreed on that) or you send the documents to this third-party - by e-mail.

In both cases you send the documents that your supplier provided, you are not supposed to generate new documents to show the value or the origin of the goods.

If this is inter-company transfer, then you act also as a supplier and you are expected to issue whatever is needed to transport the goods. In this case you generate the documents from the outbound delivery, not from the inbound one.

Incoterms only define who bears the risk for the products from certain point and who pays the taxes and transportation, they have nothing to do with the value of the goods stated in the customs documents.

If you ignore for a while what is technically possible in SAP and think logically, the sending party knows best what are the products and their origin. You need the documents for customs processing before the goods reach the final destination, so creating a proforma from the inbound delivery for customs declarations does not make much business sense.

[Jelena]

You can put whatever you want in the custom output.

But still this doesn't seem like the right process. I worked at several companies with export business and 0 times the proforma / commercial invoice had to be created by us as buyers. Incoterms do not matter here at all. We do provide proformas for all our export customers. They are the ones who need to present the documents but we are the ones giving the documents to them.

You might want to double check with the business and supplier because what you are attempting seems very illogical.

[former_member630201]

The exact process is:

- Supplier sends goods from origin.

- Central office receives packing list and invoice from supplier

- Central office creates inbound delivery

- Central office generates documentation for customs at point of destination (they indicate exactly the customs classification/tariff item number and value of goods being imported for each category) to avoid mistakes at border and goods being stopped for a while

- Local customs agent does the processing of goods at border and clear taxes

This is why they do such document. I agree with you, I had never seen such process, but as they centralize this process, they need that kind of document to be created automatically. Maybe this is what Jelena refers as Customs Output, which should indicate material/customs classification + value of goods imported, in order to calculate taxes. This is done on the basis of the packing list sent by supplier, which indicates they real number of goods sent.

So whether logical or illogical process, I agree, I'm just trying to understand if there is a standard process/output to do so.

Thanks for your help in advance

[Jelena]

There is no standard process because this is not the best practice. Heck, this is just not a business practice, period. The description lost me at "Central office generates documentation". But you do receive the invoice from the vendor, as stated above? So why do you not use that invoice?

If the documents provided by the supplier are incomplete or incorrect then you need to tell the supplier that instead of making up papers yourself. As I said, we do a lot of export business and we do bend over backwards to accommodate all the reasonable customer requests for documentation. And we do prefer to be informed about our errors instead of keeping to create wrong documents (it also helps us better serve other customers in the same country).

So still I believe your solution is to explain this to the business and work with the supplier to get all the needed documents from them. It does not matter at all whether there is "centralized location" or customs agent. Seller's role is to provide all the sales documents. When you go to a store and buy something do you ever create the receipt yourself? That wouldn't even be legal...

[Lakshmipathi]

Have you tried after maintaining copy control between those two documents?