Plants abroad: Sales-specific settings 

Description

If plants exist abroad for a company, i.e. in the same company code, (within the EU), the tax postings and the trade statistics for the goods flow between these plants are required for (INTRASTAT) internal EU trades statistics. In SD, this applies to replenishment and consignment.

You can meet these requirements by carrying out billing with special settings in pricing for the relevant transactions:

Because the INTRASTAT declarations were created using billing documents and the tax postings were created using financial accounting documents, billing documents are created for consignment fill-ups or pick-ups and replenishment deliveries although they are not relevant for billing. However, because there are no amounts the billing document has a total value of 0, obtained using a special pricing procedure (see below). INTRASTAT declarations and tax postings (the billing document is forwarded to FI) are created based on the resulting billing documents.

Do not make these settings if the plant abroad is not in the EU. All that is required is a pro-forma invoice.

Change system parameters in customizing

You can find Customizing for 'Plants abroad' in the IMG via 'Sales and Distribution/Basic functions/Taxes/Plants abroad "Plants abroad".)

A special pricing procedure (RVWIA1) is assigned to the new billing document (billing type WIA) defined for replenishment deliveries and consignments between EU countries. This pricing procedure has the following structure:

1. Pricing condition (PR00)

2. Input tax in destination country (based on pricing condition)

3. Output tax in country of departure (that is, 0% on deliveries within the EU)

4. 100% discount R100 (based on pricing condition)

5. Output tax in destination country (based on the 100% discount)

This causes the total value of the billing document to be 0. The discount annulls the price. Input and output tax have the same percentage rate so that the total of the tax posting is zero and the total billing document has value 0.

Changes to the interface

Stock transfer

• Replenishment deliveries between different EU countries are relevant for billing. The billing status is A.

• The origin of the VAT registration number (billing header) has a new value: J

Consignment fill-up / pickup

• Consignment fill-ups / pickups between different EU countries are relevant for billing. The billing status is A.

• The origin of the VAT registration number (billing header) has a new value: J

• During consignment fill-up, the coutry of the ship-to party is now used as the departure country country for tax determination.

Changes in procedure

Deliveries that occur as a result of a stock transfer order, can be billed if the delivering and receiving plants are in different EU countries and belong to the same company code.

Consignment fill-ups and pickups can be billed if the delivering plant is in an EU country and the consignment stores are in a different EU country. The consignment fill-up is then no longer relevant for the INTRASTAT declaration.

Condition records must be created for tax conditions WIA1, WIA2, and WIA3.

1. WIA1: Input tax in country of destination.
The tax code for the tax determination procedure of departure country must agree with the tax code of the country of the company code. This is because the tax code is accessed via the company code country during forwarding to FI. The field 'reporting country' (that is - country of destination) must be maintained in the characteristics of the tax code.

2. WIA2: Output tax in the country of departure (0 % for EU-internal deliveries)

3. WIA3: Output tax in country of destination.
The tax code for the tax determination procedure of departure country must agree with the tax code of the country of the company code. This is because the tax code is accessed via the company code country during forwarding to FI. The field 'reporting country' (that is - country of destination) must be maintained in the characteristics of the tax code.

The total of the taxes has a value of 0. The total of the billing document also has a value of 0. The price is reduced by 100% using discount R100.

Procedure for removing dataset errors

Note:

When you maintain the tax indicator, remember that the tax indicator must be maintained at the same time in different tax determination procedures, or that you have to create a general tax determination procedure containing the tax indicators of the different relevant countries.

Please read the Release Note

abroad.

Dependent functions

INTRASTAT declarations, combined declaration, Sales tax advance return

Further notes

For further information on the other applications involved, see the following release notes:

FI - Taxes on sales/purchases: Plants abroad

SD/MM - Declarations to the authorities in the EU - plants abroad

Plants in Foreign Countries