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Korea Consignment Localisation

Hi,

Currently, we are implementing consignment process for Korea.

As per STD. SAP there are four steps in consignment process.

1. Fill up

2. Issue

3. Return

4. Pick up

In first step of Fill up, there is only sales order created in system & no accounting entry.

But as per Korean Local laws when goods are moved under first step of consignment, Prepaid VAT to be recognised in books of accounts i.e.

Prepaid VAT A/c Dr.

To Sales VAT Account.

This localization is not supported by SAP.

Please advice.

rgrds/Vinod.

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  • Thanks for your reply.
    I checked with client. The requirement is same as mentioned in above question.

    I raised incident to SAP, but didn't get any reply so far.

    Please provide your valuable inputs for the above question.

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1 Answer

  • Jan 02, 2017 at 09:05 AM

    Not sure whether you are aware of the impact on inventory once you complete the fill-up. You just move the goods from unrestricted to a specialized area and still the selling company holds the inventory. This being the case, how come you can levy tax? Tax can be levied only if the goods are sold out. Better check once again with your client whether if inventory is in selling company, still they need to levy tax? I dont think so in which case, you cannot follow the process. Raise an OSS message if this is necessarily required

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