Sap plant abroad solution

Plant abroad introduction

Organization structure level understanding

Overview

Theory functional example for business

Advantages in EU market with this solution and transaction flow theory

Plant abroad organization structure  and assignment configurations part1

shipping point customer and material extension Part2

stock posting for plants and errors

Intra STO settings for plant abroad

plant abroad finance settings

Sto cycle till sd billing tax master condition master data and so on

Conclusion with Intrastat reporting and statical value.

why we need plant abroad.

organization have branches outside the company code country

Moreover, the organization may be selling to consumers  as business to consumer in other EU countries. If they sell goods and send to consumers in another EU country, they need to register there and charge VAT at the rate applicable in that country.

However, if they were selling to business B2B, they do not charge VAT – if the customer has a valid VAT number. The customer in this case has to account for the VAT on the transaction as if it had sold the goods himself, at the applicable rate in customer country. Normally, he will later be able to deduct this amount. Therefore, plant broad is relevant to B2C sales and it’s not required for B2B sales in other EU country.

Comprehensive configuration solution for companies in European Union where companies have plants in another European Nation.

This functionality helps to assign plants from different countries to one company code without a need of having sales organizations in the countries where plants are located and company needs to have Vat registration numbers in those countries where it is obligated to file Vat returns or European Sales Listing or Intrastat returns.

This can be activated to handle tax issues for companies that have Vat registration numbers in more than one country.

Activation ensures that Vat registration number correctly gets printed on documents like sales, purchases, invoices, correct VAT registration numbers being used for right tax calculation, stock transfers between plants get captured for intra stat reporting correctly.

This functionality helps to process Tax returns for warehouses or sales and distribution centers abroad using domestic company codes. i.e. Tax returns to a foreign tax authority, EC sales list for another EU country.

To enable intra stat reporting and vat on foreign vat registration number.

To enable Intra company and cross-border stock transfer. This functionality helps to create Plant Abroad Invoice (Document type wia) for stock transfers between foreign plant and domestic plant.