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Plants Abroad - How To

Plants Abroad - How To

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Published by Luc De Winter

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Published by: Luc De Winter on Nov 01, 2010
Copyright:Attribution Non-commercial


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Introduction: 1.

One of the challenging things while setting up SAP system in any country is, setting up of Correct Tax System. European Market is treated as Single Market even though it has 27 independent countries with their own Tax legislations and Tax Rules. Any company which is doing business in EU, it must have Value Added Tax Registration Number (VAT No.) for that specific European Country, and it must do its business under that country specific Tax Rules and Regulations.



Need of Plants Abroad Functionality: This functionality is required under following situations: i. A company is located in any of the European Country (E.g. Luxemburg) and has its Plant / warehouse setup in another European Country (E.g. Germany).

ii. While setting up SAP system, company code will have the address of Company's Central Location. (i.e., address of LU) iii. It must reports all its goods movement from or to Germany warehouse with Germany VAT number to Local Tax Authority. iv. And in Luxemburg, the company must report all its sales and purchases as per LU Legal Regulations with LU VAT number. v. In this case, it requires to setup two company codes for two VAT numbers, which is not advisable when Business wants to run on same company code. vi. So, to handle this situation, Plants Abroad functionality will be implemented, where business can be run with single company code but with different VAT numbers. vii. Plants Abroad functionality is used to handle tax issues for companies that have tax registration in more than one country. viii. This functionality ensures that correct Value Added Tax (VAT) numbers are printed on the corresponding Purchasing as well as on Sales Documents. ix. This functionality ensures to fulfill the country specific legal requirements. Treatment of Goods Movement in Plants Abroad: Let us see how the following standard business processes are treated differently when Plants Abroad functionality is activated. A) Intra Company Stock Transfer 1. Normally for Intra Company Transfers, there will not be any Invoice generated, because, it's shear Stock Transfer between two different locations within the same company code.

8. the new Intra Stock Transfer process will be as follows: i. then this goods movement is need to be reported as per the EU tax regulations.2. Intra Company Purchase Order (UB) ii. B) Consignment Sales Process 1. Consignment Return and Consignment Pickup. the invoice generation is not required. Intra Company Purchase Order (UB) ii. MIRO against Purchase Order. Consignment Issue. Consignment Fillup and Pickup can be treated as just a goods movement and can't be treated as any sales.. and the stock is moving between them. this can be treated as just a goods movement and not sale. 5. The standard Intra Stock Transfer process has the following steps of i. It can be captured in INTRASTAT. Goods Receipt against Purchase Order (MIGO) iv. Plants Abroad Invoice (WIA) v. Effects of Plants Abroad Implementation: . Replenishment Delivery (NL) iii. As this is ZERO valued invoice. Plants Abroad invoice is generated so that these movements can be captured in INTRASTAT and these invoices are ZERO invoices as there is no sale and this is only goods movement. With this implementation.e. 3. to follow tax regulations. Consignment Fillup and Pickup is done and the consignee is located in any EU country other than the Plant / Warehouse located country. 6. Replenishment Delivery (NL) iii. Consignment Fillup. 3. As there is no transfer of ownership. 4. i. But when. Consignment Process will have four steps i. MIRO against Purchase Order. INTRASTAT reports can only be generated using Invoice documents and here in this situation there will not be any invoice generated as this stock transfer is treated as goods movement but not any sales 7. 4. 5. So we can generate a new invoice which is called as Plants Abroad Invoice. so that. any goods movement between boarders is need to be reported using INTRASTAT reports. Out of these four steps. Goods Receipt against Purchase Order (MIGO) iv. But when the two Plants / Warehouses are setup in different EU counties. So. As per EU regulations. only Consignment Issue and Consignment Returns can be treated as actual sales to customers and the respective invoices can be generated. 2. can be treated as goods movement across borders. ii.

the country wise tax reports can't be generated. Otherwise. While creating new tax codes or maintaining existing tax codes. This "Country Currency" is maintained with respective country currency for all those countries which have company code and the respective "Exchange Rate Type" is also maintained. accounting documents will not be generated. so that. 3.1. these tax codes will be reported in the respective country Tax Reports. a new field "Reporting Country" will be shown. otherwise. . 4. Once the Plants Abroad functionality is activated in SAP system. This field must be maintained with the respective reporting country. then a new field "Country Currency" and "Exchange Rate" will be shown in Set Country Global Parameters configuration. 2.

5. While doing MIRO (Invoice Verification). the default country of company code will be shown in the document. while generating advance tax reports (RFUMSV00). so that. this must need to be changed with change Reporting Country option. Due to Plants Abroad activation. there will be new field "Tax Return Country" and a new check box "Country Currency instead of Local Currency" will be available in Further Selections. 6. this value can be posted with the respective warehouse country. . so.

8.7. because the same company code is maintained in different countries with different VAT numbers for different Plants / Warehouses. And while executing INTRASTAT Arrivals and INTRASTAT Dispatch reports. the country code for which the Tax Report is generated (say LU or IT or DE) and need to check the check box of "Country C instead of local C" (if the company code country currency and Plant / warehouse country currency are not same) so that the report can be generated in Local Currency and not with the currency of Company code country. . need to give the fields "Country of Declaration" and "Dec Currency" so that the report can be generated based on this declaration country and currency. Here we have to give.

when companies have their plants / warehouses in other European Countries and stock movements are done from those countries.Conclusion : Plants Abroad Functionality ensures to run the business as per the European Tax regulations and provide correct Tax Reports and INTRASTAT reports. .

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