Skip to Content
avatar image
Former Member

Import purchase Scenario In SAP Business by design

Import PO with GST: After create of purchase order we can't able to fetch all conditions details in custom duty invoice and also price convert in local currency.

Please provide us full configuration with end to end cycle of above two scenalrio.

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

4 Answers

  • Hi Prasad,

    Under the GST regime, import of goods into India will be deemed as inter-state supplies and would be subject to Integrated tax. In addition to the IGST, the import would also be subject to Customs Duties. Goods imported from Foreign vendors will attract IGST and BCD. When you raise PO, system will take 1 - Non Taxable Acquisition (Product).

    In customs duty invoice, you can use the following item types:

    1. Import VAT Debit Item -> This type of item contains the tax amount as a net amount. In cases where the supplier pays the tax for you and wants a refund from you, the import VAT debit item can also be used in regular supplier invoices.

    2. Customs Duty Debit Item -> This type of item is not taxable. You cannot enter a tax code.

    You create a customs invoice for the taxes and duties based on the invoice you received from your customs authorities. It is not possible to create customs duty invoice based on purchase order reference. However in the Items tab, you can enter the order ID just for reference purpose.

    The reason for entering PO reference is as below;

    If customs duty invoice is assigned to PO reference, user receives a task when an invoice or credit memo with reference to this purchase order has been canceled. You can then check whether the customs invoice needs to be canceled as well. The system only sends this task if you have added the reference to the purchase order in the customs invoice. The system does not use this reference for any other purpose.

    Hope this is clarified. If yes, please mark it as answered.

    Best Regards,
    Arun

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Feb 01 at 06:07 PM

    Hi Arun,

    We are facing following error at the time of post new custom duty invoice,

    Error: Posting of invoice not possible due to error in financial accounting;Account determination missing for account determination group . Choose the account determination for Costs.

    We want to add the customs costs to our materials cost (inventory).

    Best Regards,

    Debi Prasad

    Add comment
    10|10000 characters needed characters exceeded

  • Hi Prasad,

    For non-deductible taxes, you can choose a G/L account. Account determination error appears if there is no account determination for product categories. You can check in Business Configuration work center -> Implementation Projects -> Fine Tune -> Activity Charts of Accounts, Financial Reporting Structures, Account Determination -> Choose Account Determination, and then select Inventories -> Check the Product Category and maintain the Default Account Determination Group for Materials/Services.

    Further it is not possible to add the custom duty costs to inventory costs.

    You can check this in GST jam page.

    https://jam4.sapjam.com/groups/B56C5QtpdYwMeVuqCmXbHa/overview_page/PB4R4fgEra7uc0WeUzB5fA

    Best Regards,
    Arun

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Feb 19 at 10:12 AM

    Dear Arun,

    Referring to your above answer, I would like to know how the Cost of Goods arrived in SAP BYD if the Customs duty cannot be added into the product cost.... Also would like to know how additional costs like Customs duty, Freight charges, Loading and Unloading charges are added into the Cost of the Product, because we used to add all these cost along with the Product cost and then calculate the margin.

    Kindly Clarify.

    Rgds,

    Sri

    Add comment
    10|10000 characters needed characters exceeded

    • Hello Sridevi,

      As Arun mentioned, we proposed many fixes for the case, however due to high complexity, fixes were not possible. As a work around, kindly create a manual JEV and post the document.

      Regards,

      Bhargav