Knowledge Management

Question:
Hello all,
I hope this finds everyone well.
I have a few questions relating to plants abroad and hope that someone can help provide some information.
We are now in the early stages of a project where there my company is headquartered in Germany and has manufacturing sites in Ireland and Germany and sales offices in Italy, Spain, France and the UK.
I have heard that for EU VAT reporting, SAP offers plant abroad functionality. The problem is I am not too familar with SAP being a new user and do not know about this functionality.
What does Plants abroad do exactly?
How does it work?
Does it mean that each manufacturing site has to be created as a plant in SAP?
Does is also mean that each sales office location (they basically function only as point of sale, no manufacturing though in some places there is some consignment stock) has to be created as a plant in SAP too?
Thank you in advance,
Rard
Answer:
You better start at use the search and search for plants abroad.
You can as well find some discussion here in SAPfans, use the search.
Plants abroad
Plants are usually located in the same country as the company code.
However, you can create exceptions to this rule using the plants abroad concept. The following prerequisites must be fulfilled:
You must ensure that procedures for tax-related data is adhered to (the advance return for tax on sales and purchases).
You can only have one tax number for each combination of country and company code.
Tax determination from Sales and Distribution (SD) and Financial Accounting (FI) must yield the same results (duplicate tax codes mean extra data maintenance).
You can enter one additional reporting country for each combination.
You must ensure that the requirements relating to trade statistics are adhered to (this is guaranteed within the European Union).
You can use plants abroad provided you have no reporting requirements other than:
Advance returns for tax on sales/purchases
Intra-European Union trade statistics (Intrastat (within the European Union))
Extra-European Union trade statistics (Extrastat (Netherlands, Germany))
EU sales list (FI)
This means that property, buildings, staff, and so on of regional warehouses abroad do not belong to the domestic company code.
You cannot use the plants abroad concept if your plants are genuine plant locations (that is, defined as legal entities).
You must check requirements for the papers you need (export papers, import documents, shipping papers).
You can carry out cross-company code stock transfers. However, if you use the plants abroad concept, notifiable processes within a single company code may result – for example, stock transfers using MM and SD.
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
Answer:
Thank you Svetja.
Cheers,
Rard