|Explain the Procedure For Import
P.O. and Duty.
Indian Import cycle is bit more complicated and SAP is not geared to handle in a straight manner through single MIGO as the cycle consists of multiple vendors.
This requires special Schema to be developed and needs Both SAP FICO and MM consultants to work together.
Imports will have two categories.
Category 1: Bonding and De-bonding cycle ( Freight and Insurance during Bonding and other duties during De-bonding )
Category 2 : Home consumption ( all charges to be accounted at one stage )
Further Import cycle also has two types :
In altogether there are 4 procedures to be adopted for the above.
The schema should be such that, at PO stage. We should be able to assign multiple vendors : Import supplier for Items ( foreign currency ) , India customs for Duties ( Indian currency ) , Freight and Insurance separately ( Indian or foreign currency as the case may be ). During schema, duties have to be defiend as VATable and non VATable. Accordingly, accounting posting keys to be defined.
Most important aspect is the FI transactions and mapping it to import cycle. In case of Import cycle, MIRO is done first and then MIGO is carried out later steps.
Payment of Advance to Supplier : Vendor advance and corresponding enctry in GL account, credit Bank a/c , debit Vendor A/c
MIRO is done in Three or four instances ( may be five also if cenvat credit for duties to be taken ).
MIRO -1, Freight vendor : Inventorised : Credit Freight Vendor,
debit freight & Insurance clearing account, when money is paid : Debit
Vendor, Credit Bank
MIGO : to Stores where accenting documents gets generated to the
extent of inventorising .All the inventorised values in corresponding GL
accounts produces the Product Cost. Debit Inventory
MIRO - 4, on Supplier ( Foreign exchange ), Entry to be cancelled
against advance paid. While carrying out, the difference in exchange rate
also to be passed on to separate GL account. : to be inventgorised.
Get help for your SAP MM problems
SAP Material Management Tips
All the site contents are Copyright © www.erpgreat.com
and the content authors. All rights reserved.