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Standard Import Pricing Procedure (India) in SAP MM

1) The document describes the standard import procurement process in SAP MM for India, including defining condition types, creating an import pricing procedure, assigning it to condition types and suppliers, and using it to create a purchase order. 2) Key steps include creating condition types for costs like customs duties, freight, insurance, and landing charges, then setting up an import pricing procedure and assigning it to these condition types. 3) An example purchase order calculation demonstrates how the import pricing procedure applies the different condition types and taxes to determine the total cost.

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Mallu Lohar
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1K views

Standard Import Pricing Procedure (India) in SAP MM

1) The document describes the standard import procurement process in SAP MM for India, including defining condition types, creating an import pricing procedure, assigning it to condition types and suppliers, and using it to create a purchase order. 2) Key steps include creating condition types for costs like customs duties, freight, insurance, and landing charges, then setting up an import pricing procedure and assigning it to these condition types. 3) An example purchase order calculation demonstrates how the import pricing procedure applies the different condition types and taxes to determine the total cost.

Uploaded by

Mallu Lohar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

STANDARD IMPORT PROCUREMENT PROCESS (INDIA LOCALIZATION) IN SAP MM


In Import Procurement Process, 1st we need to clear the customs duties, freight and other
charges, and later pay the goods/service cost as per their payment terms after goods
receipt.
In below example of Import Scenario, Tax conditions with below combination are used
PBXX– Gross Price (Maintained in pricing procedure ZIMPOR-Service/Material)

PB00- Gross Price (Maintained in pricing procedure ZIMPOR-Service/Material)

7RB1 – Freight (Value) (Maintained in pricing procedure ZIMPOR -Service/Material)

7INS – Insurance (Value) (Maintained in pricing procedure ZIMPOR -Service/Material)

7LOC -Landing Charge (1%) (Maintained in pricing procedure ZIMPOR -Service/Material)

7CDB – IN Basic Customs (Maintained in pricing procedure ZIMPOR -Service/Material)

7SWC – IN: Social Welfare C (Maintained in pricing procedure ZIMPOR -Service/Material)

MIIT – IN: Import GST Deduct (Maintained in Tax pricing procedure MTAXIN – GST India)

Sample Tax Computation – Only to Understand How Tax Conditions Are Calculated

INR
Enter CIF Value in Rs. 1000
A Assessable Value (CIF 1010
Value + 1% Landing Charge
of CIF)
B BCD (18%) On Assessable 181.8
Value
C Social Welfare Surcharges 3.636
on BCD (2%)
D Total A+B+C 1195.436

GST ON “D” 215.17


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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

1) Create Condition Types Via M/06


7CDB – IN Basic Customs

7SWC – IN: Social Welfare C


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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

7RB1 – Freight (Value)

7INS – Insurance (Value)


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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

7LOC -Landing Charge (1%)

The Central Board of Excise and Customs (CBEC) intends to abolish loading 1 per cent
landing charges on CIF (cost, insurance and freight) value of imported goods.

PBXX – Gross Price


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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

PB00 - Gross Price

2) Create an Import Pricing Procedure ZIMPOR via M/08

Import Pricing Procedure: ZIMPOR


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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

New Entries

Look at my own Import Pricing Procedure.


Note: I am using non-Inventoried condition type for 7LOC: Lading Charges on CIF% so here
no accounting entries will generate, and the amount (1%) will be going to expenses a/c
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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

3) Assign Pricing Procedure ZIMPOR to the Condition Types

4) Define Schema Groups

5) Define Schema Determination

Here I have assigned Schema Group Purchase org. + Schema Group Supplier to the Import
Pricing Procedure
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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

6) Assign Vendor Schema Group to Supplier Via (BP)

7) Import Purchase Order create via ME21N


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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

At invoice tab, Assign Import GST Tax code, and untick GR-Based Invoice Verification

At condition, we need to assign vendor (7RB1), so we can pay the delivery charge separately
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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

Look at Pricing Calculation

PO created under the number 4500001389

PB00 Gross Price (Total Qty x Material Unit Price) 1000


= 1x 1000
7RB1 Freight (Value) 20
7INS Insurance (Value) 10
Total CIF Value 1030
7LOC Lading Charges on CIF (1%) 10.30
Assessable Value 1040.30
7BCD In Basic Customs Duties (18%) 187.25
7SWC In Social Welfare Charges on BCD (2%) 3.75
Total ( Ass.Val+BCD+SWC) 1231.30
Import GST (18%) on 1231.30
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IMPORT PRICING PROCEDURE IN SAP MM – M. JAYABABU (SAP MM/S4HANA CONSULTANT)

8) Pay the Customs Duties + Delivery via MIRO

1st we need to pay Customs + Delivery charges, then later will pay material Price as per their
terms and condition after goods receipt.

Thank You

Name: M. Jayababu (SAP MM/S4HANA Consultant)


Mobile: +91-8897688689
E-mail id: [email protected]

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