SAP Plants In Foreign Countries Description Previously, the plants of a company code had to belong to the country of that

company code. As of Release 4.0A, it is possible to deviate from this rule for European company codes with European plants. This is useful, for instance, for firms carrying out business transactions with other European countries on a minor scale. It is not then necessary to manage master data such as vendor master records, customer master records, or G/L accounts on a multiple basis (per company code). Changes to the interface There is a new field "CtryVATNumber" in the header data of the purchase order. The country is automatically suggested from the plants of the PO item. This ensures that the value-added tax is paid to the tax authorities of the country where the tax is due. The PO items may belong to plants of one country only. The country influences the determination of the tax code and the control of the import data screens. The system determines whether or not an import transaction is involved on the basis of the combination "country of vendor" and "country of plant". In the case of the selection report for the Intrastat declaration, the plant has been included as an additional mandatory selection criterion. This is a precondition for the generation of Intrastat declarations for those PO items that belong to one particular country only. 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 y y 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 y y y 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

FI - Taxes on sales/purchases: Plants abroad Description Until now, the R/3 system required that all plants assigned to one company code must also be assigned to the country of that company code. In terms of the tax procedure, this means that each transaction that cannot be processed in the company code country from a tax viewpoint must have a separate company code. Examples: y y Filing tax returns with foreign tax authorities Group return for another EU country

This procedure required a great deal of maintenance from companies with numerous foreign warehouses. Filing tax returns has now been made simpler for the situations above. Release 4.0 gives you the option of processing transactions for warehouses, sales offices, or plants abroad in your domestic company code. You may use this option for those transactions for which no other reporting requirements besides tax returns exist in each country currency. The condition for implementing this solution is that the warehouses abroad are not actual places of work. If they are, you must still create a separate company code for them. Function description To complete the new procedure, the tax code was enlarged to include the tax country attribute. The tax country is the country for which a tax return must be filed. The tax country allows you to make settings that diverge from the company code country for the following: Calculation of tax base Calculation of cash discount base Currency key Translation rule for tax currency Restrictions If you are using more than one calculation schema, you have to make the decision concerning tax calculation with jurisdiction code for all the schemas simultaneously. Printout of tax on sales/purchases is not supported at this time. Installation information If you used modification solution "Plants Abroad" in 3.0C or 3.0F, you will have to maintain the entries for registration numbers in table T001N over again. Change system parameters in customizing Activate the "Plants abroad" function in the Financial Accounting Implementation Guide (IMG). To do this, choose Activate plants abroad and Enter VAT registration number of plants abroad . Keep the following in mind for tax calculation schemas: The company code can only work with the tax calculation schema assigned to the country of the company code. Using more than one tax calculation schemas within one company code is not possible at this time. Modification solution "Plants abroad" allows you to assign plants from different countries to one company code.

This results in additional requirements for the character of the tax calculation schema for this company code as well as the character of the tax calculation schema for the countries of those plants assigned to this company code. If A is the country of company code X that plants in countries B, C, D... are assigned to, either of the situations below is possible: Alternative 1 - One tax schema TAXEUR for countries A, B, C, D, .... - You define a general tax schema TAXEUR that includes tax specifics for countries A, B, C, D, ... - You must define all tax codes (with country assignment) required in these countries. Alternative 2 - Different tax schemas for countries A, B, C, D, ... - Example: - Country A -> Tax schema TAXA - Country B -> Tax schema TAXB - ........ - All tax codes for country A are defined in tax schema TAXA. - In tax schema TAXA, all tax codes are defined for those countries required for acquisitions or deliveries to plants abroad assigned to company code X (with country assignment). - When K3 is a tax code for country B that is required in a plant assigned to company code A: Tax code K3 is defined in tax schema TAXB. Tax code K3 must also be defined in tax schema TAXA (with country assignment country B), but the definition of tax code K3 must be the same in tax schema TAXA as it is in tax schema TAXB. Recommendation - SAP advises giving your tax schema the character outlined in Alternative 1. Background information: - For a shipment from Plant B in country B, SD finds tax code s of the tax schema assigned to country B. - Tax code s is transferred from the SD to the FI application. - The FI application interprets tax code s with the tax schema assigned to country A of company code A. - It must be ensured that the following is true for countries A and B when using different tax schemas: When s is a tax code used in plant B, - Definition of tax code s in tax schema TAXA = Definition of tax code s in tax schema TAXB Changes to the interface The possible entries pushbutton allows you to restrict the tax country. The system checks during document entry whether the tax country is unique in the document. Only the following exceptions are permitted: y For incoming payments with tax adjustment for cash discounts, more than one tax country is allowed, but only one for each automatically generated cash discount item. Plant stock transfers from SD across national borders are permitted because a cash discount adjustment is not necessary (simple G/L account postings).

The following programs were enhanced with a selection option for tax country (this field is only visible if "Plants abroad" is active): RFUMSV00

RFASLM00 RFASLD11 RFASLD12 RFWERE00 RFUSVB10 The program for sales/purchases tax returns (RFUMSV00) was enhanced with the option of displaying or printing values in reporting currency (country currency) instead of local currency. Further notes Further information is available in "FI General Topics." The following release notes describe "Plants abroad" for other applications: MM : MMM_PUR_40AWIA Intra-EU trade statistics: 40A_FT_GOV_WIA SD: SD_40_WIA SD/MM - Declarations to the authorities in the EU - plants abroad Description As of release 4.0 the function 'plants abroad' is supported for declarations to the authorities in the EU - INTRASTAT and EXTRASTAT. Note See also the following release notes from FI, MM and SD: y FI: FI_40A_WIAUST

Plants In Foreign Countries Description Previously, the plants of a company code had to belong to the country of that company code. As of Release 4.0A, it is possible to deviate from this rule for European company codes with European plants. This is useful, for instance, for firms carrying out business transactions with other European countries on a minor scale. It is not then necessary to manage master data such as vendor master records, customer master records, or G/L accounts on a multiple basis (per company code). Changes to the interface There is a new field "CtryVATNumber" in the header data of the purchase order. The country is automatically suggested from the plants of the PO item. This ensures that the value-added tax is paid to the tax authorities of the country where the tax is due. The PO items may belong to plants of one country only. The country influences the determination of the tax code and the control of the import data screens. The system determines whether or not an import transaction is involved on the basis of the combination "country of vendor" and "country of plant". In the case of the selection report for the Intrastat declaration, the plant has been included as an additional mandatory selection criterion.

This is a precondition for the generation of Intrastat declarations for those PO items that belong to one particular country only. Further notes For more on this topic, please refer to the following Release Notes: FI Plants in foreign countries SD Plants in foreign countries: Declarations to authorities

Plants Abroad Use You can process tax returns for warehouses or sales and distribution centers abroad using domestic company codes. These tax returns may be: y y Tax returns to a foreign tax authority EC sales list for another EU country

This procedure simplifies the process of making tax returns for companies with several plants or warehouses abroad. Note that these are not real operation centers abroad; you would have to create separate company codes for these.

You should only use this function if you have several warehouses, distribution centers, or plants abroad. If however, you only have individual warehouses abroad for example, you should set up a separate company code for each warehouse. Otherwise the functions and scope of the Customizing settings for plants abroad would be too complicated for a single entity abroad. For more information, see the Implementation Guide (IMG) for Financial Accounting under Financial Accounting Global Settings p Tax on Sales/Purchases p Basic Settings p Plants Abroad. Integration This function affects the FI, MM, and SD application components. For more information, see the documentation for the SD and MM application components. Prerequisites If you want to introduce plants abroad, note the following in connection with tax codes and tax jurisdiction codes: y Jurisdiction code Within one client, you can use the function Plants Abroad and the tax calculation with jurisdiction code in different company codes. Make sure however, that the company code in which you want to use Plants Abroad does not use tax calculation with jurisdiction code, and that this company code is accordingly not assigned to a country in which the jurisdiction code is used. y Tax procedure and tax code

Define one tax procedure with a unique tax code for all the countries/company codes that are to be combined under the plants abroad function.

You want to use plants abroad for your company codes Spain, France, and United Kingdom. However there are different tax on sales/purchases rates in each of the three countries. For each tax on sales/purchases rate, assign a unique tax code (not A0 in all company codes): Company code Spain 0001 12% France 0002 14% United Kingdom 0003 16%

Tax on sales/purchases Tax code

AX

AY

AZ

In addition, you must ensure that each document contains the tax code for one country only. The only exceptions to this rule are the following: o More than one tax country is allowed for incoming payments with tax adjustment for cash discount amounts, but only for those cash discount line items created automatically. Inter-plant transfers between different countries from SD are allowed, since no cash discount adjustment is required here (only G/L account postings).

Features This function is only for those transactions for which there are no further reporting requirements in the given country currency, other than submitting tax returns. In order to use plants abroad, you use the field Tax Country in the tax code. The Tax Country is the country for which the tax return has to be created. You can use the tax country to make settings that differ from the company code country for the following areas: y y y y Tax base determination Cash discount base determination Currency key Translation rule for the tax currency

You make and activate the settings for plants abroad in Customizing for Financial Accounting. When you enter a document, you can enter one tax country; it must be unique in the document. The appropriate returns are then created for this country. The amounts are translated into the tax currency where this differs from the local or transaction currency. Any exchange rate differences are created in the local currency of the company code in question, independent of the tax currency. The tax programs allow you to select by tax country. Sender information is replaced by country-specific sender information where required.

You use the following programs for plants abroad: Adapted programs RFUMSV00 Comments Selection can be made according to tax country (reporting country). There is also a parameter enabling you to control whether the value is output in the national or local currency. Selection according to tax country possible. The amount is displayed in the national currency. Selection according to tax country possible. The amount is displayed in the national currency. Company code address data is not presently provided. Selection according to tax country possible. The amount is displayed in the national currency. Company code address data is not presently provided.

RFUSVB10 RFASLM00 RFASLD02 (without CoCde address)

RFASLD12 (without CoCde address)

RFASLI00 (Include) RFASLIDD (Include) RFWERE00

Plants Abroad Use You can process tax returns for warehouses or sales and distribution centers abroad using domestic company codes. These tax returns may be: y y Tax returns to a foreign tax authority EC sales list for another EU country

This procedure simplifies the process of making tax returns for companies with several plants or warehouses abroad. Note that these are not real operation centers abroad; you would have to create separate company codes for these.

You should only use this function if you have several warehouses, distribution centers, or plants abroad. If however, you only have individual warehouses abroad for example, you should set up a separate company code for each warehouse. Otherwise the functions and scope of the Customizing settings for plants abroad would be too complicated for a single entity abroad. For more information, see the Implementation Guide (IMG) for Financial Accounting under Financial Accounting Global Settings p Tax on Sales/Purchases p Basic Settings p Plants Abroad. Integration This function affects the FI, MM, and SD application components. For more information, see the documentation for the SD and MM application components. Prerequisites

If you want to introduce plants abroad, note the following in connection with tax codes and tax jurisdiction codes: y Jurisdiction code Within one client, you can use the function Plants Abroad and the tax calculation with jurisdiction code in different company codes. Make sure however, that the company code in which you want to use Plants Abroad does not use tax calculation with jurisdiction code, and that this company code is accordingly not assigned to a country in which the jurisdiction code is used. y Tax procedure and tax code Define one tax procedure with a unique tax code for all the countries/company codes that are to be combined under the plants abroad function.

You want to use plants abroad for your company codes Spain, France, and United Kingdom. However there are different tax on sales/purchases rates in each of the three countries. For each tax on sales/purchases rate, assign a unique tax code (not A0 in all company codes): Company code Spain 0001 12% AX France 0002 14% AY United Kingdom 0003 16% AZ

Tax on sales/purchases Tax code

In addition, you must ensure that each document contains the tax code for one country only. The only exceptions to this rule are the following: o More than one tax country is allowed for incoming payments with tax adjustment for cash discount amounts, but only for those cash discount line items created automatically. Inter-plant transfers between different countries from SD are allowed, since no cash discount adjustment is required here (only G/L account postings).

Features This function is only for those transactions for which there are no further reporting requirements in the given country currency, other than submitting tax returns. In order to use plants abroad, you use the field Tax Country in the tax code. The Tax Country is the country for which the tax return has to be created. You can use the tax country to make settings that differ from the company code country for the following areas: y y y Tax base determination Cash discount base determination Currency key

Translation rule for the tax currency

You make and activate the settings for plants abroad in Customizing for Financial Accounting. When you enter a document, you can enter one tax country; it must be unique in the document. The appropriate returns are then created for this country. The amounts are translated into the tax currency where this differs from the local or transaction currency. Any exchange rate differences are created in the local currency of the company code in question, independent of the tax currency. The tax programs allow you to select by tax country. Sender information is replaced by country-specific sender information where required. You use the following programs for plants abroad: Adapted programs RFUMSV00 Comments Selection can be made according to tax country (reporting country). There is also a parameter enabling you to control whether the value is output in the national or local currency. Selection according to tax country possible. The amount is displayed in the national currency. Selection according to tax country possible. The amount is displayed in the national currency. Company code address data is not presently provided. Selection according to tax country possible. The amount is displayed in the national currency. Company code address data is not presently provided.

RFUSVB10 RFASLM00 RFASLD02 (without CoCde address)

RFASLD12 (without CoCde address)

RFASLI00 (Include) RFASLIDD (Include) RFWERE00