Free of Cost Import Order

Hell All,
Could u pl. help me out ?
I have an one senereio. We have received the imported material on free of cost basis. But we need to pay custom duty for this transaction to custom vendor. If i create PO with Free of cost tick at an item level then the condition tab gets disapperar. But i need this condition tab as i am manually updating the assesable value in that so that the cutome duti's gets calculated. In our import pricing procedure we don't have condition type for Discount other wise i could have maintain 100% over there.
Now please give me the solution how can i create the purchase order? so that i could pay custome duty to custom vendor..
Thanks in advance.
Shailesh

dear,
there is not a std solution
but, i have a work around solution
u have create a PO with notional value (very negligible value 0.01 USD)
then u can able to capture the customs duty in MIRO
regards,
snb

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COGS determination for Free of cost sales order

Hi All,
We have an issue regarding the COGS determination for Free of cost sales order. We created a free of cost sales order. But i need to know whether this sales order items will hit to COGS or not? If so how do i check whetehr its has been charged to COGS or not? and we have an issue raised saying thst one material in this sales order has not being charged to COGS. So please help me to solve this issue. Ihave checked the account assignment in GBB-VAX. And is there anyting to do with the settlement profile for COGS determination?.
Thanks and regards
Uday

Hi,
During PGI a material document and accounting doc gets created which would hit COGS account.
You're talking about one specific sales order in which for one material it didn't hit COGS account or any order you're creating now with that material has an issue? If its a specific material which has an issue always..then something is wrong with that material master setup. Also you can go to the reported Sales order--doc flow to the PGI document and check the accounting doc and if its not posted..check the analysis why its not posted?
And if its one off then I would suggest 2 options:
1) Reverse the goods movement, cancel the delivery or if billing has already been done..cancel the billing as well. And re-do the cycle. This always ensures correct posting.--> Recommended option.
2) Manual adjustment in FI.
And settlement profile is Controlling concept..not sure you would get any help on this in this forum.
Regards
RS

Problem regarding Purchase Order with Free of Cost Material

Dear Xperts,
I am facing problems while doing Goods Receipt of a Purchase Order having all the materials we are going to receive Free of Cost from the Vendor.
This case is happening with Doemstic and as well as Importer Vendors also.
Problems to be solved:
1. If we are using Tax Code(with excise conditions) ,excise duty calculation does not take pace automatically at Goods Receipt as the Material Value is Zero on which the duties will be calculated for a Manufactuing Plant.
2. This case seems very problammatic if that Purchase Order is having almost thousand line items.The user has to enter all the Excise duties manually for each & every line item during Goods receipt in a manufacturing Plant.
3. In case of Importer Purchase Order also, the CVD portion & CESS on CVD portion user has to enter manually.
4. To solve this problem we are not using Free Goods Indicator in PO, we are entering 0.01 paisa , but during the MIRO of Planned Delivery Costs , the system is not showing or providing POP-ups of those relevant condition types to the user to enter the actual amount.
Please advice, how can we proceed in this case.
Regards,
Soumick

First you are putting 0.01 value . So the planned delivery cost is not showing coz if say tax is 8% then 0.01 x 0.08 will be 0.0008. It will take first two digit after decimal and hence its 0.00 and hence plannded delivery cost is not showing.
If you put 0.5 you will be able to put planned delivery cost in MIRO
Now regarding value is zero and how will the import duty be calculated. May be make a pricing routine where in the custom duty is not calculated on this base price 0.5 or 0.01 but on the actual value if it was not free of cost and that value you can maintain through MEK1 transaction code.
And while posting MIRO or MIGO you need to identify that these are free of cost material and use BADI fi_ac_document
and may be replace the actual GL with some other GL so that 0.5 or 0.01 does not add to your inventory cost and you could knock off later.
Regards
Sangeeta
Edited by: Sangeeta Khurana on Feb 6, 2012 1:37 PM

Free Items in Import Purchase Order

Hi All,
How to handle a FOC materials ( No payment to Vendor) in Import PO.
I have an Import Purchase order (FOC items) with all the applicable Duties and i have to pay only the Duties to the Customs and not to Vendor.
How to handle this scenario in SAP????
Regards,
Kumar Rayudu

Dear Kumar,
Free of Cost (FOC) materials can be handled in two ways;
(a) Through PO using Free Items clicking ICON in transaction code ME21N
(b) Through manitaining condition records using transaction code MBN1
Using this, materials can receive free of goods...that means....you can make goods receipt....but not valuated....i mean.....no liability will create.
Hope this information will be useful.
Bye,
Muralidhara

Import Procedure for Zero Value Materials (Free of cost)

Dear all,
Our client have business scenario that they are getting Import Materials for Rs. 0/- (Sample material), and we all know that at the time of receiving from the customs we have to clear customs duties based on the value of the material. Since for our client its free of cost, how to make process in SAP and to maintain the customs conditions.
Normally we will make process if there is value in Purchase order.
PO => MIRO => J1IEX => MIGO => J1IEX => MIRO.
Kindly let me know if anybody have done this scenario.
regards,
Dhanu

Dear Sir,
I am also in Import dept and now working in SAP . hope the same problem will come to us in future.
1. U rise the P.O for the exact value .
2. Bill pass the customs duty in MIRO while paying duty.
3. then amend the orderand make the value for the material in P.O as zero.
Somasundaram

Question regarding free of cost order

scenario: i have a client who wants to send 100 qty of good A free of cost to a customer. the customer is only responsible for taxes on this order. how would i do this in SAP? what do i need to create?
thanks!

Else,
you can create your own pricing procedure & use the new sales doc type (DPP).
10 0 ZPRI - Basic Price - Statistical
50 0 MWST - 10(ZPRI) - MWS
so that, Basic Price will not be included for net value calculation, but taxes will be calclulated on basic price.
try n revert
NOTE: Make sure, in Incompletion procedure either @ header or Item level, Net value should not be included. otherwise system asks to maintain the price. As maintained price will not be considered in Net value as its Statistical.
so its recommended to maintain seperate Document type / Item category for all these kind of scenarios.
Edited by: Reazuddin MD on Oct 20, 2009 3:04 PM

Question regarding free of cost order (samples)

scenario: i have a customer who wants to send 100 qty of good A free of cost to a customer. he wants the tax to show up on this order but the taxes on this are paid by the client himself and not the customer. how would i translate this into SAP?
thanks!

Hi
Create a seperate pricing procedure for free samples.....
let us take a example..
step :10       PR00---100 quantity---    +100 /- rs -
ERL
    Step 20 : R100--- 100% discount- -100/- Rs-----ERS
       Step 30:               Customer A/C    0 /- Rs
     Step 40: tax caluculate on step 10 CST 2 %--2 /-RsMWS
In this way customer account 0/-Rs debited CST account 2/-Rs credited.
Thanks
Sree

Imports - Free of Cost

Hi,
We want to purchase materials from an Imports Vendor. The Vendor has agreed that he will deliver some materials free of cost, that means we don't want to pay the vendor for that Material, but at the same time we have to pay the Customs Duty & the CHA Charges as applicable.
How to configure the scenario in SAP.
Please guide.
Regards,

Hi,
Check the link
Regarding Import Scenario for free goods
Free Import Items
Regards
KK

Free of Cost item with transportation charges

Hi
We have a new scenario in which we are importing some spare parts of the machine which have no value (free of cost). As we are importing the material some charges like custom duty and freight has to paid by us. Now the problem is when we are creating the purchase order and mark the line as free and enters the condition at the purchase order header, the system is not picking the charges at the time of invoicing.
Can anyone has any idea how I could handle this? Is there is any other procedure for handling the scenario?
Immediate response is helpful.

Hi,
While creating Po, check the check box for free goods...
While doing MIRO, enter your all costs in planned delivery costs.
Or
1. Create a PO for free goods with Free goods delivery indicator on.
2. Do goods receipt of free goods.
3. Create MIRO without PO and debit the account of material with delivery cost.
Note- Material tab is visiable in MIRO if you have activated direct posting to material account in SPRO.
SPRO - > Mat Mgmt - > LIV -> Incoming Invoice -> Activate Direct Posting to G/L Accounts and Material Accounts
Hope it helps.
Uts
Award if helpfull
Edited by: utsa agr on Feb 23, 2009 1:37 AM

Free of cost delivery

Scenario:
I created a PO and ordered 100 pcs of material A. I receieved 100 pcs of material A and 2 pcs of Material B.
Maretial B is free of cost provided by the vendor.
How wil I receieve it in SAP. How will I do MIRO in this case?
If its an Import item (ie import cycle is used) what will be done in that case?
Regards
VS

No I do not want to mention it in PO. (its client requirement).
regards
VS

Free of cost item sale.

Hi all,
It is a my claint urjent requirement free of cost item sales where we will define that, what is the order type, how i have to explain them any body plz give me some help .
Thanks in advance for your support and help.

hi,
am not sure if understood your requirement. But anyways, we have sales document type FD which allows free of charge deliveries.
You can uses a free of charge delivery to send materials free of charge to your customer.
Process Flow
The system cannot create a delivery without a sales document, so you have to create a free of charge delivery as a type of sales document.
You create a sales document with the order type for free of charge deliveries.
In Customizing you can block the free of charge delivery from being delivered. Go to Sales > Sales Documents > Sales document header > Define sales document types, and select the Delivery block field in the Shipping section.
For free of charge deliveries, you can do one of the following:
Approve it by deleting the delivery block.
reject it by entering a reason for rejection.
Pl clarify if this what you are looking for.
Thanks,
Sadhu Kishore

Free Goods Without Sales Order

Dear Gents
We have a scenario where goods are issued for free without a sales order,it's not considered sales,they just give some materials out from the stock as gifts&issue it on a cost center , there is no sales order,invoice,etc..is it normal then that the accounting entry passed would be Dr Cost Of Goods Sold Cr Inventory or what should be the correct scenario , Thanks.

Dear Expert,
When Goods are Given as gifts or Samples it becomes an expense for the company. So in my view it has to be shown as an expense.
The Accounting Entry would be :
Advertising A/c ....Dr
To Purchases A/c ....Cr
Regards,
Shankar K B

Free of cost material but the planned delivery cost is to be invoiced

Hi,
We are having a scenario where in we receive material free of cost but have to pay for the delivery cost to the vendor.
We are creating Purchase order with the "free item" checked and we are maintaining the freight condition at the header level as at the item level as soon as you check the free item check box, the conditions tab disappears.
Secondly if we are maintaining planned delivery at the header level it requires the Invoice check box to be checked. Which is not possible to maintain with the free check box ticked.
Have maintained the vendor master without the GR based IV tick.
Request to kindly do let us know where have we missed out.
Regards,
mahesh.

one of the way out of this issue is
give a heavy discount on that material from vendor and put the price of material such as to do the frieght .but if u r having moving average price for that material thenit is not at all preffered

Free of Cost   sales error during billing

Dear all,
i am facing the problem while doing Free of Cost sales ,   i have created a seperate document order type for FOC with the sd document category as "C" and and doc prcing porcedure as "C" . and in billing document   i have also included doc prcing procedure as "C" .
My problem is when i create the sales order and when doing delviery there is no problem.. but when i created a delivery related billing
*the first error i am getting is   document no XXXXXX ( error in account determination ) but when i went to VF 02 and put the billing document number to check account determination analysis .*
*i am getting this second error " billing document XXXXXX does not exist"*
*Message no. VF041*
*Diagnosis*
*The billing document you specified does not exist.*
*This document was possibly archived.*
but when i went i checked in the table level it is the corresponding billing document number is showing in the table
when i check the document flow of the order i am not getting the order number also to see the document flow for it
wht could be the reason
i am confused.
my senario is    foc sales should be done   the customer should not be debited but excise entry has to be made for it.
please give ur valuable inputs
Edited by: k.kumi on Aug 8, 2010 7:06 AM
Edited by: k. on Aug 8, 2010 7:40 AM

Thanks for your reply
your absolutely right, i have used FD document type and i have created a proforma invoice so that i can have a excise posting done for the particular materials , because since it should excised .
i have a billing type with SD document category as "U" for proforma invoice .
here everything is happening like sales order is created , PGI is happening and when it comes to delivery related billing
The system cannot able to able to save the data during billing.
the system is saying an error "billing document XXXX does not exist"
since i am creating a proforma invoice atleast i need to have the billing document number generated to do the exicse posting
Is it related to number ranges problem ?
Kindly reply me , waiting for your reply in anticipation
thanks

Report for the cost for replacing the defective goods free of cost

hi guru's,
iam having the qury that iwant to create a report for the free of cost .For the senario that company wants the report for replacing the defective goods free of cost .pls help me out .IN SD module
Edited by: joe mm on May 13, 2008 3:35 PM

Dear joe
I am sure, for giving free of cost, you should be having different document types like sale order for free goods, billing with no value. So thru VF05, by selecting the billing document type, you can generate a report.
thanks
G. Lakshmipathi

Free of Cost Import Order

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