IMPORT PROCUREMENT 2012

IMPORT PROCUREMENT

PREPARED BY DHEENA DHAYALAN.M

UNISOFT INFOTECH Ltd | DOCUMENTATION OF IMPORT PROCUREMENT PROCESS

IMPORT PROCUREMENT 2012

CONTENTS 1. INTRODUCTION..01 2. TYPES OF IMPORT.01 3. MASTER RECORDS IN IMPORT PURCHASING.01-07 4. CONDITIONS IN PRICING 08 5. CONDITION TYPES AND CALCULATION SCHEMA08-10 6.IMPORT CYCLE FOR IMPORT MATERIAL10-18

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1.INTRODUCTION

efinition of import is commodities, i.e. goods and services brought into one country from another country for the purpose of trade. Import is also a verb meaning the action of bringing in goods and services from another country.

1.1.TYPES OF IMPORT There are two basic types of import: 1. Industrial and consumer goods 2. Intermediate goods and services Companies import goods and services to supply to the domestic market at a cheaper price and better quality than competing goods manufactured in the domestic market. Companies import products that are not available in the local market. Data on international trade in goods are mostly obtained through declarations to custom services. If a country applies the general trade system, all goods entering the country are recorded as imports. If the special trade system (e.g. extra-EU trade statistics) is applied goods which are received into customs warehouses. 2. MASTER RECORDS IN IMPORT PURCHASING Following are the master records that has to be maintained during import purchasing in SAP system 1. Material master 2. Vendor master 3. Purchasing info record 4. Conditions in pricing 2.1. MATERIAL MASTER The material master record is an enterprises main source of material-specific data. it is used by all areas of logistics. The integration of all material data in a single database object eliminates the problem of data redundancy. All areas such as purchasing, inventory management, and material requirement planning and invoice verification can jointly use the stored data. The following screen shot shown below explains the creation of material master record for import procurement.

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IMPORT PROCUREMENT 2012

2.2. VENDOR MASTER The vendor master record contains information on an enterprises vendors.this information is stored in individual vendor master records. In addition to the vendors name and address, a vendor master record contains data such as the following: Currency used in transactions with the vendor Terms of payment Names of the contacts(e.g. sales person) Since, for accounting purposes, the vendor is also ma creditor of the enterprise, the vendor master record also contains accounting data such as the reconciliation account from the general ledger. 2.3. PURCHASING INFO-RECORD The purchasing info record provides the option of storing information about the a vendor and a material as the master data at purchasing organization and plant level. We can define the following information in info record: Current and future prices and conditions(for example, freight and discounts) Delivery data (for example, planned delivery time and over delivery and under delivery tolerances. Vendor data(for example, contact person) and vendor-specific data about the material(such as vendor sub-range to which the material belongs, description of material at vendor) Number of last purchase order Texts We can manually create or change an info record for a purchasing organization or plant The step by step process to create a info-record PATH: - In purchasing menu, choose master datainfo recordcreate (or change) T-CODE: - ME11 STEP:1:- Use T-code ME11

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IMPORT PROCUREMENT 2012

Figure 1: create info record initial screen

On the initial screen, enter vendor, material, purchasing organization and plant and Enter Step: 2:- On the following data screens, the necessary data manually, for example planned deliver time, gross price and conditions.

Figure 2: general data screen

Make the entries as per the requirements in the general data screen.

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IMPORT PROCUREMENT 2012

Figure 3: purchasing organization data 1 screen

On the purchasing organization data 1 screen enter the planned delivery time. net price etc and hit Enter

Figure 4: purchase organization data 2 screen

Make the entries as per the requirement and hit Enter

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Figure 5: text overview screen

Insert the text in the info-record note and hit Enter

Figure 6: in the above screen a pop-up for save is shown

Click on the YES in the save pop-up box to the save the info-record.

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IMPORT PROCUREMENT 2012

Figure 7: document saved

Info-record is saved and the document no: 5300007520 CONDITIONS IN PRICING Conditions are agreement with vendors about prices, surcharges and discounts, and so on. Conditions can be maintained when entering quotations, info-records, outline agreements (contracts, scheduling agreements) and purchase orders. The net and effective prices in purchasing documents are determined based on these conditions. We can also store general conditions at vendor level. The system then pulls these conditions for price determination. CONDITION TYPE AND CALCULATION SCHEMA The different price factors such as gross price, discounts, freight costs, customs and taxes are represented with condition types. The condition type determines how the price factor is calculated. An access sequence can be assigned to a condition type. The access sequence is a search strategy used to define the sequence in which condition records for a condition type are read. the condition types that play a important role in the price determination are grouped together in a calculation schema. The calculation schema provides a framework for a price determination. It determines the sequence in which the condition types are taken into account.

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IMPORT PROCUREMENT 2012

Figure 8: calculation schema for import pricing with customs duty

Figure 9: calculation schema for import pricing with customs duty

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IMPORT PROCUREMENT 2012

Figure 10: calculation schema for import pricing with customs duty.

The pricing procedure is done as shown in fig (8), (9), and (10). We can define different calculation schemes for individual purchasing organizations and vendors.

PROCUREMENT CYCL FOR IMPORT MATERIAL 1. PURCHASE REQUISITION Purchase requisition is internal documents for asking the purchasing department to procure a particular quantity of a material or a service for a particular date. STEP: 1: path: - Logistics Materials Management purchasing Purchase Requisition Create (ME51N). T-code: ME51N Make the entries in the item over for item 10 as shown in the below screen shot 1. 2. 3. 4. Material Quantity Delivery date plant

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Figure 11: purchase requisition screen

Step: 2: after making the entries check and save the document or press Ctrl+S to save the purchase requisition document.

2. CREATE PURCHASE ORDER Purchase order are external document, through which asking the vendor to supply a material for a certain quantity. Purchase order consists of pricing conditions with customs condition, tax, quantity, net price, gross price etc. TO CREATE A PURCHASE ORDER FOR A IMPORT MATERIAL. STEP: 1: Logistics Materials Management Purchasing Purchase ordercreatevendor/supplying plant known (ME21N). T-code: ME21N Make the entries as follows 1. Material 2. Quantity 3. Vendor 4. Tax code as V0 Choose the tax code as V0 for 0% tax in invoice tab of the purchase order screen

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Figure 12: purchase order screen

Figure 13: purchase order screen

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IMPORT PROCUREMENT 2012

STEP: 2: after making the entries in the order item details screen, click on the conditions tab and select the customs condition type JCDB and click on the details as shown in the fig 13. STEP: 3: in the item condition details screen insert the customs vendor in the vendor field at the lower right corner of the screen as shown in fig 14.

Customs vendor

Figure 14: item condition screen

Repeat the step 2and 3 for condition types JCV1, JACS, JADC and check and save the purchase order

Figure 15

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IMPORT PROCUREMENT 2012

STEP:3: INVOICE VERIFICATION FOR CUSTOMS CLEARING PATH: - LogisticsMaterials ManagementLogistics Invoice Verificationdocument entryeneter Invoice (MIRO). T-code: - MIRO

Figure 16: invoice verification screen

Enter the company code 1100 and hit Enter.

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IMPORT PROCUREMENT 2012

Input the amount and qty

Figure 17: Miro screen

Choose the purchase order number: 4500001565 and choose planned delivery costs and make the entries for the quantity and amount field for all the condition types to clear the customs and hit enter. Copy the balance amount and paste in the amount field and hit enter Simulate and Save the miro document.

Figure 18

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STEP: 4: Goods receipt (MIGO) PATH:- Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order GR for Purchase Order (MIGO). T-code: - MIGO

Figure 19:goods receipt initial screen

Choose the purchase order document number and hit enter.

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Figure 20

System will generate the excise invoice number as shown in fig 20 and hit enter to accept the excise invoice document number.

Figure 21

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IMPORT PROCUREMENT 2012

Choose the goods movement as 101+ for moving the goods to the unrestricted stock and check item ok and save the document. STEP: 5: invoice verification for the supply vendor PATH: - LogisticsMaterials ManagementLogistics Invoice Verificationdocument Entryeneter Invoice (MIRO). T-code: - MIRO

Check the entries and save the document.

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