Functionality differences in C-LTVD issue, between mixed and internal origin product

[SAPSupport]

Scenario 1

Internal Procurement: When a preference determination is performed after the year has started, it is possible to issue an LTVD for the entire current year.

For example if you perform determination on 4/22/2022, then it is possible to issue a C-LTVD for
1/1/2022 – 12/31/2022.

- However could present a compliance issue during audit as the determination and preference master data shows only eligible from 4/22/2022 – 12/31/9999 and yet the customer certificate can be issued for 1/1/2022-12/31/2022

Is it the case that C-LTVD can be issued if there is no NEGATIVE preference status during the first part of the year and determination is eligible then C-LTVD can be issued.?

Scenario 2

Mixed Origin: When a preference determination is performed after the year has started it is possible to issue an LTVD for the entire current year.

For example if you perform determination on 4/22/2022, but also have an ELIGIBLE V-LTVD covering
01/01/2022 -12/31/2022 which has been aggregated, it is only possible to issue a C-LTVD for
the 04/22/2022 - 12/31/2022. It should be possible to back-date the determination or otherwise have a way to issue a certificate for the entire year?

Looking for an explanation as to why if it is possible to issue a C-LTVD for internal products full year in scenario 1, cannot issue a full year C-LTVD in scenario 2?

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[SAPSupport · Accepted solution]

egarding scenario one:

From a legal perspective, it would not be an issue as long as you have not
delivered any goods in the period in which you do not have a preference statement.

For example, if you have an invoice for month February and you just started the determination in April
and if you then create an LTVD, it would be expected that the system should provide a negative statement,
because at the time of the first invoice, you did not have a preference statement in the product master
and therefore it has to be considered negative.

If the invoice was created after the preference determination, then it would be not an issue because you have not delivered anything to the customer before the preference determination, e.g. you did not ship anything and the LTVD will say that the statement is valid for all shipments within that period.

Regarding scenario two:

Although you have an eligible LTVD for the complete year, you have no results from the preference determination for the first 4 months or so, and therefore these months will be negative and you cannot issue a positive LTVD for the complete year. This is correct. In standard, it is not possible to back date the preference determination. For a back dated preference determination it would require historical data (e.g. BOM, procurement indicators, prices, etc) which unfortunately cannot be done by
in the GTS system.