Oriental Rubber Industries Ltd.

Solution Document
 CONTROL SHEET

Project Name: ORIL Duty foregone - EOU

Code:

Document Name: ORIL Duty foregone - EOU

Version Date Description Prepared Revised Approved Accepted

1.0 11/12/17 Solution Document Irfan Dalal V0 Umesh Shinde

Signature

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 Table of Contents
1. OBJECTIVE.......................................................................................................... 4
2. ORILS REUIERMENT FOR DUTY FORGONE ISSUE: ...................................... 4
3. AIS SOLUTION DETAILS ................................................................................... 4
4. PREREQUSITES.................................................................................................. 5
5. ASUMPTIONS AND DEPENDANCIES ............................................................... 5
6. TEST CASE DETIALS ......................................................................................... 6

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1. OBJECTIVE

This solution document contains following points:

1.1 ORILs current import procurement scenario at EOU plant and Duty foregone issue
1.2 AIS Solution details.
1.3 Prerequisites
1.4 Assumptions and dependencies
1.5 Test case Details

2. ORILS REUIERMENT FOR DUTY FORGONE ISSUE:

2.1 Under the EOU scheme, ORIL import raw material without payment of duty for its EOU
plant. Here main objective is produce finished goods from this raw material for export
only.
2.2 But in some cases ORIL use these duty free material in domestic sale also. But by law
ORIL has to pay basic customs duty as per BoE for used imported raw material in
domestic sale at the time of sale.
2.3 In current system it is very difficult to calculate duty and control on such type of sales
activity.

3. AIS SOLUTION DETAILS

3.1 Due to practical business scenario at times EOU (Imported) material has to be used in
for domestic sales orders, later it becomes complicated to calculate the Customs Duty
To Be Paid amount from SAP.
3.2 AIS has enhanced system to control on delivery; If ORIL use duty free raw material in
domestic sale FG then user will be compelled to pay duty for making PGI from system.
3.3 Once GRN for imported material done then EXIM department will update the BCD
assessable value and BCD percentage. AIS has given one separate uploading tool to
update these information in GRN. This updation rights will be given to only EXIM
department.
3.4 System will block delivery for PGI if its found such raw material in final out going
product.
3.5 User will get dashboard cum report which will show sales order number, delivery
number and used raw material and its quantity which is being used in current delivery
and how much duty should to be paid.

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 3.6 In same dashboard user will be able to select record and execute the duty transaction,
in background system will post the custom duty entry.
3.7 Once user paid duty through these report then those records will be move from unpaid
duty report to paid duty report.
3.8 Once user post the duty then user will be able to post PGI against particular delivery.
3.9 As a report ORIL Team can get one screen output for the Duty paid or Duty Pending
Recods.

4. PREREQUSITES
4.1 Delivery required for this report.
4.2 Material receipt against only ZI type PO.
4.3 Sales order type should be ZDM2.

5. ASUMPTIONS AND DEPENDANCIES

5.1 This report is applicable only for Plant 1010 (EOU Plant).
5.2 Batches are unique at material level for FG.
5.3 In GRN (MIGO) user has to update BCD percentage and assessable value; otherwise
system will not show duty and its percentage in report.
5.4 In GRN line item wise TEXT field is used for only BCD percentage and assessable
value.
5.5 After discussion with ORIL we have taken only sales order type ZDM2 in consideration
for EOU domestic sale.
5.6 As discussed with ORIL, user enters all Import purchase orders in ZI document type
only in EOU plant.
5.7 User will pay duty through duty forgone report only; otherwise system will not update
the paid duty report and record will be remains in duty unpaid report.
5.8 Vendor for duty payment is fixed.
5.9 GL for duty payment is fixed.
5.10 User will not pay duty partially for same delivery.
5.11 In FB60 line item wise TEXT field is used for only auto updation of delivery
number for reconciliation.

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6. TEST CASE DETIALS

6.1 Sales Order

As usual user will enter sales order for domestic customer in order type ZDM2.

In this case ORIL got order of material code

Required Inputs
User will enter sales order in system
Sales order type ZDM2

Save document

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6.2 Purchase Order

User will place Purchase order to replenish raw material for particular sales order.

Required Inputs
User will enter Purchase Order for raw material
Purchase order type ZI

Save document

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6.3 Goods Receipt
Vendor will dispatch material against purchase order, In ORIL user will enter GRN (MIGO)
against it.

Required Inputs
User will enter Goods receipt against purchase order
Enter receipt quantity.

Save document

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 6.4 Upload BOE assessable value and percentage

TCODE ZDUTY_UP

Required Inputs
Select file name to upload duty

Execute

If we didnt upload duty assessable value and duty percentage then system will not show values
in report.

Once we upload the duty assessable value and percentage then report will be show with
proportionate values.

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 6.5 Delivery against sales order

User will create delivery by VL01N and select those material whose raw material is duty
free.
Delivery 0080015113

Required Inputs
User will make delivery document against sales order. But system will not allow for PGI
Enter to be dispatch quantity

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 6.6 Post Good Issue
System will block delivery for PGI, if duty free raw material used in outgoing finished
goods.(Without duty payment)

6.7 Dashboard cum Report for Duty payment

User will run report to know how much duty need to pay to custom department.

Required Inputs
Duty Post: Remaining deliverys for basic custom duty payment.
Duty Reconcile : Paid deliverys
Plant : 1010 (EOU Plant)
Sales Document: User can filter records by sales document.
Delivery: To filter records by delivery document number (It is mandatory field).
Material: To filter records material wise from selected delivery.
Delivery Date: Delivery document date range (It is mandatory field).

Execute

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6.8 Duty payment in background

User will select records for particular delivery and execute.

System will calculate duty amount and post duty.

6.9 Delivery
Now system allow user to do PGI.

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