Preference calculation in SAP

Preference calculation with M.SecureTrade Preference Management

Efficient calculation of the origin of materials directly in sales documents

Mercoline offers an integrated and powerful solution for SAP that automates the calculation of the origin of materials for externally procured materials and materials produced in-house. Based on supplier declarations and country-specific processing rules, M.SecureTrade Preference Management supports preference management from calculating complex bills of materials (BOM) to issuing declarations of origin for customers.

The solution at a glance

Preference calculation for all materials direct in SAP sales documents

Calculation directly during creation of a sales document (e.g. invoice)
Automatic or manual triggering of the calculation
Calculation of all material items according to criteria such as procurement type or special procurement type

Use of different BOM types and valuation method of materials with origin

BOM explosion depending on explosion mode
Determination of the actual procurement type for mixed procurement
Various methods for determining the value of materials used

Preference Calculation Document (PCD) with all calculation results

PCD as a central calculation document that includes all the results for a calculation transaction.
Parallel calculation results for all preference procedures/rules
Determination of the overall result for threshold value-dependent calculation results by comparison with the ex-works price

Comprehensive monitoring of all calculated materials and SAP docs

Overview of all preferential and non-preferential materials
Skip to the details of the calculation results (PCD)

Import and use of all EU preferential agreements

Import program for automatic import of the data content "origin and preferences" (Bundesanzeiger)
Display of various preference aggreements, procedures and rules

100% SAP integrated

Fully integrated with SAP ERP and SAP S/4HANA

M.SecureTrade Preference Management is designed to be available on your SAP test system within only a few days.

System and process analysis on the topic of preference management in the customer SAP system
Support in preparing a “preference management” target concept
Provision of SAP transports and implementation of M.SecureTrade Preference Management (License required)
Integration of requirements specified by the customer using predefined BAdIs

Adaptation of forms (e.g., LTSD, declaration of origin on invoice)
Training in working with the Mercoline solution and the SAP standard functions
Provision of documentation (Admin. and user manual)
Mercoline provides updates as part of the maintenance agreement

Background

A preference calculation is used to calculate whether the goods have EU origin.
The term "tariff preference" refers to the preferential treatment of a good during import customs clearance.
To benefit from tariff preferences, the origin of the final product must be proven.
Proof of European origin is provided by (long-term) supplier's declarations.

Preference calculation is used to determine the proof of origin for products manufactured in-house.
For the calculation of the preference price, existing preference agreements between individual preference zones and the preference rules defined with them are also used.
The preference calculation must be comprehensible and documented.
False proof of preference is considered a tax offence and entails customs duties and penalties.

All Mercoline solutions can also be used in the subscription model.

Reference story: Schneider automates preference certificates for customs

Objective:

The solution should implement the preference management in SAP and be largely automated, meet customs requirements and correspond to the processes used previously in the company.

Highlights:

Determination of the preferred origin for sales materials largely automated
Calculation of the value share of EU origin and non-EU origin of the input materials
Company-specific customizing of the application possible

“Preference management is now largely automated, which saves us 90 to 95 percent of the time. The system of transactions, monitoring and checking functions quickly led to a high level of acceptance among employees. We can now make a preliminary prediction about an offered machine to the customer during the sales pitch. This makes it even easier to export our products.”
Thorsten Schwing, Manager Import/Export & Purchasing at Schneider