Import Duty Calculation

Dear All,
Can anybody provide the details how the 7 import duties are calculated(Customs,CVD and Addl Excise duty) from accessible value of a PO with an example?
Regards

Your import pricing shall contain following components -
Basic Price (assessible value)
+ Custom Duty
+ CVD
+ Ecess on CVD
+ Sec Ed Cess on CVD
+ Ecess on Customs Duty
+ Special Add Duty
Regards
Rajesh

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Duty calculation for import PO for a specific material group

Hi All,
As per company requirement, we need to do changes in duty calculation for import PO for a specific material group.
Current scenario : Currently duty calculating on MRP with abatement 35% ( We have ABTT condition @ 35% of MRP).
For example:
Material: ABC , Basic Price = 1000, MRP = 2000 and duty is 10%
Duty Amt = 2000(MRP) - 700(35% ABTT) *10%(Duty) = 130
Cess 2 % = 2.6
Ecess 1 % = 1.3
Total duty = 133.9
This duty (133.9) paid to custom vendor and loads in material cost.
New Requirement: For vendor payment purpose duty should be calculate as above but for material cost should be calculated on Basic price.
For Example:
Material: ABC , Basic Price = 1000, MRP = 2000 and duty is 10%
Duty Amt = 1000(BP) *10%(Duty) = 100
Cess 2 % = 2
Ecess 1 % = 1
Total duty = 103 ( It should load in Material cost)
New Condition Diff Duty Amt = (1300-1000)*10% = 30
Cess 2 % = .6
Ecess 1 % = .3
Diff Duty Amt = 30.9 ( It should not be added in material Cost)
Paid to custom vendor = 103 + 30.9 = 133.9
Kindly suggest how to achieve this.
Regards
Jitendra

Hi,
   Please check whether the requirement is logical or not. Did you check the requirement with your accounts team?
   If you have different duty calculation for MIGO and MIRO, how the GL accounts will get balanced? As of my understanding, the requirement is clearly not logical.
Regards,
AKPT

Import duty process

Hi Experts,
I have come across this following scenario.
Purchase value of PVC rasin = $986
2. $1 =46.50 INR
3. Total calculated value in INR=986*46.50= 45849INR
4. Assessable value=45849*101%=46307.49
5. Total Custom duty=Assessable value 5%=46307.495%=2315.37 INR
6. Totalpurchase value of the item after calculating the 5% custom duty on Assessable value= Calculated value (Step 3) in INR5% custom duty=458492315.37=48164.37
7. CVD calculation
     (Assessable value (step4)+ Total Custom duty (step5)) * 10%
     (46307.49 + 2315.37) = 48622.86
     48622.86 * 10% = 4862.29
8.Total purchase valuewith CVD = purchase value with custom duty (step 6) + CVD value (step7) = 48164.37 + 4862.29 = 53026.66
9. Cess Calculation
     3% cess on CVD (Step 7)=4862.29*3%=145.87
10. Totalpurchase value after adding 3% cess=Total purchase value withCVD (step 8) + 3% cess=53026.66+145.87 =53172.53
11. Additional 3% Cess on CVD
     (Total Custom Duty (step 5)+ CVD (step7) +3% cess on CVD (step9))* 3%
     (2315.37 + 4862.29 + 145.87) * 3% = 219.71
12. Total purchase value with additional New CVD = (Total purchase valueafter adding 3%cess (step10) + additional 3% cess on CVD (step11)) = 53172.53+219.71=53392.24
13. Additional Import Duty
     (Assessable value (step4) +
Total custom duty (step5) +
CVD calculation (step7) +
3%cess on CVD (step9) +
Additional3%cessonCVD (step11))4%=(46307.492315.374862.29145.87219.71)4%=2154.03
14. Total purchase value after adding import Duty= (Total purchase value after adding additional new CVD (step12) + Additional import duty) = 53392.24+2154.03=55546.26
Please guide how to proceed.
Thanks in Advance

Dear Rupa, following three things can be used for any additional values with the base purchase amount. And what to use when, depends as per your client's business process , I'm writing the same as well -
1. Tax (this can be simple or complex tax codes in line items) -> this is used when the vendor's hard-copy / document contains the corresponding taxes and can be entered at the time entering the document in to your client's SAP B1.
2. Freight -> This is used for any other additional costs besides the tax. And this can be entered if the additional cost is know at the time of the document entry and the concerned document from the vendor contains the same.
3. Landed Cost -> This is used for any other additional costs, and these costs are not known at the time of document entry or the respective costs can't be shown into the concerned purchase document.
Hence best of luck for a perfect settings around this ... and if need more help of tax setup then you may refer to the following videos -
[Step 1. TaxCode Setup Steps in SAP B1 in Hindi|http://www.youtube.com/watch?v=S4P4x_6sAc0]
[Step 2: SAP B1- Simple tax formula creation tips in Hindi |http://www.youtube.com/watch?v=_OQIvSYz1xE]
[Step 3: SAP B1 Complex Tax Code creation tips in Hindi |http://www.youtube.com/watch?v=IowZK4CnFVg]

Excise Invoice:difference in duty calculation while calculating ECS& SECS

Hi All,
There is a difference in duty calculations in excise Invoice, (1) which is generated automatically while creating billing doc manually ) & (2) generating billing doc & excise invoice in PRG.In PRG Billing doc is getting generated by BAPI 'BAPI_BILLINGDOC_CREATEMULTIPLE" and Excise invoice by BDC for t-code J1IIN.
What is the difference?
While calculating ECS duty & SECS duty , AED amt should be excluded. Accordingly billing document pricing procedure was set and was working properly in both the above cases(1),(2).
But standard Excise Invoice tax procedure TAXINN,which is assgined for Excise Invoice there is difference in calculations manually & by PRG using BDC
Thanks in advance
Rayudu

Hi Mahendra,
I understand that while you are trying to post an Export invoice, you need to print excise invoice which is a legal requirement. But, in SAP the same should not be posted in any of the excise tables. I think there should be a small settings from SD side to restrict generating any accounting documents for the Export Excise Invoice. Can you please speak to the SD consultant.
Hope this helps.
Vikas.

Quantity based condition type for excise duty calculation in tax procedure

Hi,
If any one has worked on the issue of excise duty calculation on Quantity of items purchased Quantity based condition type.
[<b>For a formula based calculation procedure TAXAU]</b>
Example : If quantity purchased = 10 units
Duty to be calculated @ Rs.3 per unit
Duty on the 10 units = Rs.30
Other than SAP Note 816835 any help is appreciable.
Thanks a lot,
Uma
Message was edited by: Uma

I could not find this condition type/Tcode in our client system.
Even we are on 4.6c.
Thanks,
Message was edited by: Uma

Import duty to be added to material price

Hi!
I have one specific client's requirement ( not indian client), when import goods, they have to pay import duty and VAT :
Import duty on Basic material price, VAT on Basic material price + Import duty.
I have defined one condition type for import duty and added in tax procedure and account key also assigned in order to capture the import duty in seperate GL account.
But I don't have idea how we can add this import duty to material price i.e client is asking while posting goods receipt it has to be added, of course it is not possible.
I have tried with MM pricing procedure by giving one condition for import duty and manually they can insert import duty once they knew the import duty to be paid, then they can post GR and invoice. ( of course we cannot use both MM pricing condition approach and Tax procedure condition type)
but we want to avoid manual updation of duty tax.
Can any one suggest me alternative method.
regs,
ramesh b

Hi,
Check your import duty condition type - condition type category should be B.
Regards,
Rajeswari

Import duty is shown as CENVAT Availed Additional duty in Cenvat Register

Hi all,
Why Import duty is shown as CENVAT Availed Additional duty in Cenvat Register? ofourse it is going in to right registers at the time of posting excise invoice. but why in register it is shown as addnl duty?
Thanks in advance,
Girish

hi,
u mean 4% additional duty of customs right ?
it should come under the column of ADC availed
if it is there then there is no problem it is correct.
regards,
sujit

Import Duty added to costing run CK40n

Hi all,
We are looking to have the system automatically add the import duty on materials imported from outside of China into China during the SAP costing run. Was lookign at using CK74 additive option to set this up in the costing run or maybe somewhere in MM-PUR?. Has any one done this before or have any information on how to set this up please?
Cheers

Hi sree-
You can use x-plant material status indicator during costing run. you can set up all the parts that are active with an indicator and use this indicator during cost run. you will find this indicator in dynamic selections.
Hope this helps...
RNarayan

Need to load import duty / taxes onto inventory

Hi SAP Gurus
Need your help in one issue related to loading import duty / taxes onto inventory.
Scenario is, Corpoprate office is procuring the doing import for J&K plant.
PO has been raised by corporate office for asset & raw material. Commercial invoice has been posted for Customs 10 %, Customs Edu.Cess- 2 %, Custom Se Edu.Cess- 1 %, IN CVD 14 %, Edu.Cess- 2 %, Sec Edu.Cess- 1 %, IT Duty - 4 %. Material has been delivered at J&K plant. GRN has been done at J&K plant and excise duty has been capture but not posted yet. Invoice verification is also not done for vendor.
Now the requirement is, if we post excise using J1IEX_P for part 2 entry, the posting will happen to CEN SEC EDU CESS CR., CVD/CENVAT CREDIT, CENVAT EDU CESS CR., CVD/CENVAT CLG., CENVAT CREDIT ON HLD accounts. But for J&K plant we want the duty values to be inventorised as we canu2019t take cenvat credit for J&K plant. Also the material has been consumed i.e. stock is also not available.
How can we post the duty values to inventory in above case?
Looking for your valuable suggestions.
Thanks & regards'
Manoj Gupta

MANOJ
you go to j1iex select A02 Change
then select the vendor invoice no then go to item detail data, item select N non cenvatable and and save and go to j1iex A04 Post.
system will post ( it reverse the part1 entries) and it will give you the staus when u post.
This for this time
and for next time you create a seperate pricing procedure for JK plant if vendors are different for JK plant other wise if vendors are common to other plants
then create separate nondeductable conditon types for CVD Ecess on cvd and secess on cvd and addl duty copying the same condition types and assigning account key (with nondedudtable ticked) in pricing procedure.
Chao
give points if helpful
chris

Regarding Import Duty

Hi this is regarding Import duty structure.
one my client is having import process and they are paying customs duty in advance, and at the time of purchasing booking , only the invoice value is accounted in purchases and the corresponding customs duty which is paid in advance, a part of which has to go to landed cost and remaining should go to CVD(CENVAT), mean time when we r doing incoming excise invoice the corresponding CVD, Cess on CVD and SH Cess on CVD and Additional customs duty should have to post in respective G/L accounts and when i am doing A/P invoice, the CVD component should not go to Vendors account.
Any body highlight some standard procedure forn this as this is crucial....

Please check this thread for your link:
Re: Counter vailing duty
Thanks,
Gordon

Enhancement option for excise duty calculation program - /BEV2/EDMSESES

Hi,
My requirement is to enhance the excise duty calculation program /BEV2/EDMSESES. I searched the user exit using the package /BEV2/ED, but was not able find any user exit. So can you please help me how to enhance this standard program.
Thanks in advance,
Sudhanva

Hi,
My requirement is to enhance the excise duty calculation program /BEV2/EDMSESES. I searched the user exit using the package /BEV2/ED, but was not able find any user exit. So can you please help me how to enhance this standard program.
Thanks in advance,
Sudhanva

Excise duty calculation on Assessable value in PO

Dear Team,
We are facing critical issue in Excise Duty calculation, Excise is calculating on basic price for our normal procurement and we are selling the same at MRP cost... Now the issue is Excise Duty has to be calculated on Assessable value (65% on MRP value) instead of basic price in PO.
Example:
Basic Price - 100
MRP - 300
Assessable value - 195
Excise Duty - 24.10 (195*12.36%)
Regards,
Sai

Hi Sai,
Sorry for the late reply. I think you are close to the solution. You should not change the Procedure too much.
MRP and Abatement condition types should be kept independent of calculations in the procedure. It is only for changing the base price already got for BED(JMOP) making use of the routine. If that is the case you will get base price (BASB) added to Excise duties which are modified for calculation of VAT.
For Eg:
10 BASB
30 ZMRP(Independent condition type used to store MRP value)
40 ZABA(Independent condition typeused to store Abatement %)
70 JMOP From 10(Routine XXX which will change the base value for calculating JMOP with a formula MRP*Abatement %)
270 ZVAT(As usual will calculate from BASB+Excise duties)
Hope this is the way you have done this. Steps 30, and 40 should not come in any "From -to"steps.
This is working well with one of our clients.
Regards
Binoy

Reversal on Import Duty Provision posted thru MIGO

Hi All,
I have a issue on reversal of Import Duty provision..when GR is done for Imports the Import Duty Provision is posted to GL..there are some old provisions in this GL which needs to be reversed because there is no requirement of these provisions in the books..
For these GR's already MIRO has been done, payments to vendors are also been done and also materials has been consumed..therefore we are not in a position to reverse Material documents..
Now the issue is how to reverse these provisions? Is there any T Code for reversing automatically/manually these provisions..
Appreciate quick response on this since it is an Audit issue..
Thanks in advance.
Regards,
Sree

Hi D.K.Lakshmi Narayana,
This will have effect on vendor (Dr. Vendor), which we cannot give becuase vendor is already paid..can we give credit to COGS Account through this transaction? or is there any other T Code?
Appreciate your response..
Regards,
chakravarty

Add addition import duty cost to materials for costing run

Hi All,
Whats the best solution to add the additional cost of import duty on materials imported into China?
Is adding an additive cost (CK74N) possible and the best solution? This way it will be picked up automatically in costing run?
Cheers
Tony

Thanks Jeyakanthan. Can you give me more details though?
Are you saying to configure the additive cost? Assign it to the materials in question and then run the costing run?

Import Duty Details

Hi All,
How can we process the import duty for import items indian CoA.
has anybody configured the import duty details ?

It could be configured by creating UDF or UDT. There is no specific import duty in SAP B1.
There also possibility to develop addon.
Rgds,

Import Duty Calculation

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