Articles on SAP procurementHello friends, Through this post, I would like to share with you some useful articles on MM procurement scenarios. First, we will see an SAP procedure that will greatly simplify the creation of Imports PO. This is particularly relevant in the Indian imports business scenario. #1. Simplified Imports PO procedure: Pain areas in Imports PO procedure: Imports procurement involves a number of planned delivery costs like customs duties, freight and clearing agent charges. These costs need to be taken care in the MM pricing procedure. While creating imports purchase order, the percentages for customs duties, freight & clearing agent charges are to be entered manually for every PO item. Also, the relevant vendor code has to be entered for each delivery cost - viz., customs house vendor for every customs duty pricing condition and freight/clearing agent vendor for freight/clearing agent condition. This is a very cumbersome process for the buyer who creates the purchase order, since he has to navigate back and forth between the condition overview & condition detail screens in the purchase order to complete the entries. The objective of this article is to present a solution which will simplify this process. Typical pricing conditions involved in imports: Client procures certain assemblies and components from vendors abroad. For this purpose, they wanted to create purchase order on the imports vendor. Like in any imports purchase, there will be customs duties and delivery costs like freight and clearing agent charges. The imports pricing procedure contains the following typical condition types: Condition Description Condition Type Calculation Basis Default vendor while creating PO Material vendor Material vendor Material vendor Material vendor Material vendor Material vendor Material vendor Material vendor Material vendor Actual Vendor to be assigned Basic Price Customs Assessable Value Basic customs duty Counter-veiling duty(CVD) ECess on CVD SHE Cess on CVD ECess on Basic customs SHECess on Basic Customs Additional Duty of Customs PB00 JASV JCDB JCV1 JECV J1CV JEDB JSDB JADC To be entered by buyer 110% of PB00 10% of ZASV 10% of (ZASV+JCDB) 2% on JCV1 1% on JCV1 2% on (JCDB+JCV1+JECV+J1CV) 1% on (JCDB+JCV1+JECV+J1CV) 10% on (ZASV + JCDB + JCV1+JECV+J1CV) Imports vendor Customs House vendor Customs House vendor Customs House vendor Customs House vendor Customs House vendor Customs House vendor Customs House vendor This will enable appropriate rates/percentages to be defined at the Purchase Org. MIRO screen displays a number of line items and it becomes difficult to navigate and verify only customs duty or only freight. . Process Step Create new condition table Create new access sequence Assign this access Description A new condition table (eg. 1. When the number of PO items is high. gets this default duty rate. If the PO is processed as such. Solution overview: The proposed SAP solution will default the duty and delivery cost percentages for all the relevant condition types of PO items and also default the relevant vendor code for these condition types. Configuration & master data setup: No. freight and clearing charges condition types. This will default the vendor code for the condition type in the PO. level so that any imports vendor assigned to this Purchase Org. The proposed solution consists of the following Steps: A new access sequence is created for delivery cost conditions and assigned to each of the customs duty. level. ZCUS) is created using tcode M/07 using the condition table created in step1. The new access sequence is assigned to each customs duty 2. buyer would have to make 100 entries for the percentages only. Finance person who is doing the invoice verification will have to change the vendor during MIRO to account freight/clearing agent invoice. all condition types in the PO item will be assigned the material vendor in the conditions tab. then during MIRO invoice verification. the relevant vendor code is assigned to the condition type. 801) is maintained using configuration tcode M/03 (Maintain condition tables). Buyer would also have to reassign the vendor codes for customs duty and delivery cost condition types. Assuming there are 10 items in the PO. This will be at the level of “Purchasing Organization” A new access sequence (eg. only the material vendor will be proposed for all these conditions. 3. Condition records are maintained for each customs duty condition at the Purchase Org. By default. While maintaining the above-mentioned condition record master.(ADC) Freight charges Clearing Agent Charges ZFR1 ZCLG 2% on PB00 1% on PB00 Material vendor Material vendor Freight vendor Clearing agent Buyer has to fill in the percentages for the10 different condition types mentioned above. Step3: Assign the condition table to access sequence.No. JECV. Enter rates and validity period. Step5: In the details screen of MEK1. JADC.Organization. Step2: Create new access sequence (for eg. For eg. freight and clearing charges condition types. buyer needs to enter only the basic price. Using transaction MEK1.10%). validity start and end date. in the field catalog screen. Step4: Create condition records for duties and other delivery costs.Org level – all duties and delivery costs will be captured at Purch.Org. Step6: Create purchase order in ME21N for the imports vendor. freight condition type and clearing charge condition type using tcode M/06. . if required. Repeat steps 4 & 5 for all customs duty. Process Step sequence to condition types Description condtion type. as per the rates mentioned in the pricing procedure table. JSDB. Also assign the customs vendor code for customs duty condition types. JCDB. Enter material number. maintain condition records for condition types ZASV.Org level. maintain rate (eg. ZFRT and ZCLG. Process Steps in detail with screenshots: Below screenshots serve to illustrate the points: Step1: Create new condition table (for eg. Table# 801) in tcode M/03 @ Purch. from the condition records. This will ensure that all the condition records are maintained only once for the entire Purch. System also defaults the vendor code for customs duty and freight/clearing charges. 4 Maintain condition records When we create the imports PO.org. freight vendor for freight condition type and clearing agent vendor for clearing charges condition. Assign the default value for Purch. JCV1. basic price and plant. in the details screen of MEK1. assign vendor code for customs house vendor (in this case vendor # 302760) and save. ZCUS) using tcode M/07 and assign the condition table to this new access sequence. System automatically defaults all the duty percentages and also freight and clearing charge percentages for the respective conditions. PO qty. as explained above. in tcode MEK1. JEDB. J1CV. JCDB condition type for basic customs duty – enter Purch. The imports pricing procedure is invoked by system and systems defaults all duty and delivery costs rates (percentages) as per condition records maintained in steps 4 & 5. Verify the rates.Step7: Check conditions tab for the PO item. Finally. go to details screen of condition type by clicking the “Condition details” icon and check the vendor. . Please note that system automatically defaults the vendor code for the delivery cost.