P. 1
40620447 Plants Abroad How To

40620447 Plants Abroad How To

|Views: 25|Likes:
Published by Bogdan Bucur

More info:

Published by: Bogdan Bucur on Feb 17, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/04/2013

pdf

text

original

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.

2.

3.

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.

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

Once the Plants Abroad functionality is activated in SAP system. the country wise tax reports can't be generated. so that. This field must be maintained with the respective reporting country. otherwise. 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. 3. accounting documents will not be generated. then a new field "Country Currency" and "Exchange Rate" will be shown in Set Country Global Parameters configuration. 2. Otherwise. a new field "Reporting Country" will be shown. While creating new tax codes or maintaining existing tax codes.1. these tax codes will be reported in the respective country Tax Reports. . 4.

so. this must need to be changed with change Reporting Country option. .5. while generating advance tax reports (RFUMSV00). so that. While doing MIRO (Invoice Verification). 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. Due to Plants Abroad activation. the default country of company code will be shown in the document. this value can be posted with the respective warehouse country. 6.

7. And while executing INTRASTAT Arrivals and INTRASTAT Dispatch reports. 8. . because the same company code is maintained in different countries with different VAT numbers for different Plants / Warehouses. 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. Here we have to give. 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.

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

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->