Customizing Foreign Trade Master Data

Customizing Foreign Trade Master Data Added by Abhishek Purwar, last edited by Abhishek Purwar on May 14, 2008 This would help in ensuring that the basic configuration required for setting up Foreign trade Master Data Checklist Number ranges In number Range two type of number ranges need to be declared 1. Export/import Processing: Unique Internal number for each SD document. 2. Legal Control: The number ranges of the license master data. IMG Flow: Sales and Distribution -> Foreign Trade/Customs -> Define Number Ranges Commodity codes and import code numbers Commodity Codes/Import Codes are official numbers which group the material which are similar for custom purposes. IMG Flow: S&D -> Foreign Trade/Customs -> Basic Data for Foreign Trade -> Define Commodity Codes/Import Code Numbers by Country Export/Import Procedure Export/Import is a 5-digit code that uniquely identifies an export/import procedure. For example the business transactions within the European Community (EC), the export/import procedure code is part of the information that you submit in monthly reports to Intra stat and is of statistical interest only. Intra stat uses this information to produce foreign trade statistics. Export/Import Procedure Determination During export sales processing, the system may automatically propose an export/import procedure code, based on the following criteria: Country from which goods are exported or into which goods are being imported Sales area Export/import material group Item category of individual goods You can overwrite the proposed value manually in the delivery and in the billing document. Example The export/import procedure code can distinguish, for example, between the following export/import transactions: Goods that are shipped temporarily for further manufacture by a subcontractor Goods that are shipped to their final destination after processing by a subcontractor Procedure Definition IMG Flow: S&D -> Foreign Trade/Customs -> Basic Data for Foreign Trade -> Define Procedures and Default Value -> Define Procedure Assign Sales and Distribution (SD) default value

IMG Flow: S&D -> Foreign Trade/Customs -> Basic Data for Foreign Trade -> Define Procedures and Default Value -> Define Procedure Default Business transaction type The business transaction type is a customs term which defines the type of business, such as fixed sales. The business transaction type is automatically determined by the SAP system for a business transaction. The SD proposal depends on the following criteria: •

Country

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Sales organization/Distribution channel

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Item category

Note: For export control in SD, enter the business transaction type at item level during sales order processing. If necessary, copy the business transaction type from the material record to the document. Activities • •

Determine which business transaction types are relevant for your organization. Define the business transaction types. To do this, specify for each country an alphanumeric key with a maximum of two digits and a text. Business Transaction Type Definition IMG Flow: S&D -> Foreign Trade/Customs -> Basic Data for Foreign Trade -> Define Business Transaction Types and Default Value -> Define Business Types SD default value IMG Flow: S&D -> Foreign Trade/Customs -> Basic Data for Foreign Trade -> Define Procedures and Default Value -> Define Default Business Type (SD) Mode of transport The mode of transport is a customs term for the type of transport used to transport the goods across a border, for example, by rail, road or air. Mode of Transport in Sales and Distribution (SD)

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Alternative 01: You can use the proposal table for foreign trade header data to get a proposal for the modes of transport in the delivery. Alternative 02: The mode of transport can be determined with the route and can be added to the delivery item as well as the billing item. To do this, you must specify the relevant mode of transport for the routes. IMG Flow: S&D -> Foreign Trade/Customs -> Transportation data -> Define Modes of Transport Customs offices You define the customs offices that you require for your company. In international trade, the customs office is the office of transit from the country of export to the country of destination/transit. For trade within the EU, you specify

the relevant inland customs office. Customs Offices in Sales and Distribution (SD) • •

Alternative 01: You can use the proposal table for foreign trade header data to get a proposal for the customs offices in the delivery. Alternative 02: The customs office can be determined with the route and can be added to the delivery item as well as the billing item. The system proposes the customs office at the last domestic point on the route, that is, a port or airport. You must specify the relevant customs office and further indicators for location for each of the points.

You should have already defined points and routes. Activities in SD 1. Determine the customs offices and modes of transport that are relevant for your organization. 2. Define the customs offices. 3. Specify for each country the alphanumeric customs office key and the description. 4. Enter the modes of transport in the proposal table for foreign trade header data. OR Assign the relevant customs office to the point on the route. Also indicate the location of the point, depending on whether it is an office of transit, a load transfer point, or an office of exit. In addition, indicate whether it is an airport, a port or a train station. Note : You can also use the user exits available in SD. Definition IMG Flow: S&D -> Foreign trade -> Transportation Data -> Define Customs Offices

Basic Data for Foreign Trade By ERP on December 11, 2010

Maintain the basic data for foreign trade steps: 1. Maintain country-relevant data for foreign trade / customs 2. Define the lengths of the commodity code and the import code number for the country in which you use the SAP Sales and Distribution (the goods are exported) and SAP Materials Management (the goods are imported) application components. The commodity code is an internationally recognized classifying characteristic for trade statistics and trade with third countries. In order to facilitate foreign trade, the WTO countries have agreed that the first six digits are identical for all countries. This classification of goods is called the Harmonized System (HS). 3. Maintain the sections of your customs tariff, depending on the country Each customs tariff consists of two elements: the customs tariff procedure and the different duty rates. The customs tariff procedure represents a systematic listing of all goods. The list of a customs tariff is based on the structure of the internationally recognized Harmonized System for describing and coding goods (HS). A customs tariff consists of sections, chapters, and numbers. 4. Assign chapters to the sections that you have defined before. This assignment depends on the country: define commodity codes or import code numbers. These official numbers group together materials that are similar in terms of customs. 5. Enter keywords for commodity codes and import code numbers 6. Define a relationship between the commodity code and the import code number 7. Define export/import material groups Differentiate between goods produced in-house and goods produced externally.

8. 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. 9. Define import/export procedures and determine defaults for Sales and Distribution (SD) and Materials Management (MM) Specifies a standard, 5-digit code that uniquely identifies an export/import procedure.During export sales processing, the SAP system may automatically propose an export/import procedure code, based on the defined criteria 10. Define the PRODCOM number PRODCOM number for foreign trade is alphanumeric key which allows a systematic categorization of goods for production statistics.