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Plant abroad Solution

sarvottam_darshan
Explorer

‎2018 Feb 24 7:05 PM

 12 Kudos  57,040

SAP Managed Tags: SAP Tax Classification and Reporting

Executive Summary:

A regular requirement in European Union (EU) is to move inventory to warehouses

across boarder. In many cases, this inventory movement might just be for logistical
movement of goods for eventual sale or primarily for storage and might not be for any
manufacturing value add to the product. These warehouses might have their own
independent VAT registration number. Given the INTRASTAT regime in EU, there are
requirements to not just record such movements but also report them separately for
the warehouse in INTRASTAT and VAT reports submitted to the legal authorities.

This whitepaper discusses proven SAP standard Plant Abroad solution for such cases
of cross-border inventory movements in EU and its associated VAT accounting and
reporting requirements.

Note: Sound understanding of EU-INTRASTAT requirements, Taxation and SAP MM-FI

integration is a pre-requisite to this reading.

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 1/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

Business requirement:

The following Scenario explains the key requirements

Scenario:

Company code in Germany and warehouse in Sweden with cross border

inventory movement between them.

Sweden Warehouse is not a company code and doesn’t do any manufacturing

value add to the product but has a separate VAT and INTRASTAT registration
number and needs to do its own reporting on VAT and INTRASTAT.

Goods are transferred from within EU i.e from Germany company code to
Sweden warehouse

As per EU VAT reporting requirements, VAT postings should happen for the
goods movement to show credit and debit entries for VAT in the same document
so that overall VAT impact is nullified for the scenario under

Critical to Quality for this Solution (CTQs) to work are as listed below

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 2/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

CTQ CTQ detail

Ability to assign VAT registration from different countries to
1
one company code in EU
Correct value-added tax (VAT) registration number prints
2
on sales and purchasing documents
3 Calculates the right VAT
4 Handles stock transfers
5 Conducts VAT and INTRASTAT reporting correctly

SAP Standard Solution:

SAP provides Plant Abroad Functionality for EU to address the requirements

Reference SAP Notes:

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 3/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

SAP Notes: Description

Explains logic regarding tax
Oss note 63103 procedures if you are using plants
abroad
Oss note 1085758 Customizing for stock transports
If you activate plants abroad then
OSS note 850566 this will be activated for all
company codes within one client.
deactivate plants abroad for a
Oss note 850566
particular company code

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 4/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

Impact Consideration: Following impacts would need to be considered while

deploying the SAP plant abroad solution for an organization that is already on SAP

Impact level Impact - Considered

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 5/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

Cross-Client FI impact. Some new fields become

activated once you set this function. You enter them in
the following activities:

1. In the Define Countries activity in the Global Settings

IMG, you have to enter:
Country currency for the tax return
Exchange rate type (usually "M")
Indicators for the tax base and cash discount base

Company code
For all company codes that do not require a tax code for
'Plants
abroad', you can maintain the parameter "Plant abroad
not required" with 'X' (Transaction "OBY6") under
"Additional entries"

2. In the Define Tax Codes for Sales and Purchases

activity, you have to enter the Reporting country for the
tax codes by choosing Properties.

3. You make the remaining settings in the Define VAT

Registration Numbers for Plants Abroad activity

The activation of plants abroad has also consequences

for the VAT report (RFUMSV00 program). Here you need
Report Level to enter/activate additional parameters which are the
following:

•Reporting country / tax return country

•Country currency instead of local currency

Business Benefits:

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 6/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

Compliance to EU VAT and INTRASTAT reporting

Clear end to end audit trail for each inventory movement and related accounting

Standard SAP solution

Detailed Mechanism:

Configuration setup:

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 7/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 8/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

Transaction Setup
Step Required Setup Comments
Code required
Financial Accounting--
>Fin Act Global
Settings-->Tax on Tick the box with the Needs
1 Sales/Purchases-- SPRO question: Plants activation for
>Basic Settings-->Plant abroad activated Company code
abroad-->Activate
Plants Abroad
Enter per company
Financial Accounting--
code a country code country in
>Fin Act Global
which is different which Plant
Settings-->Tax on
than the actual abroad
Sales/Purchases--
2 SPRO country where the (Sweden in this
>Basic Settings-->Plant
company is case) is
abroad-->Enter VAT
established and the present
Register Number for
VAT registration Details
plant abroad
number.

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 9/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

Need to complete
the field "reporting
country" in the
properties of the
new tax code. This
3 Maintain Tax Codes FTXP means that you can
use this tax code for
the new VAT
registration
number/new
reporting country.
IMG: Sales and
Distribution-->Basic
Functions-->Taxes--
4 SPRO RVWIA1
>Plant Abroad--
>Maintain and Assign
Pricing Procedure
IMG: Sales and
Distribution-->Basic
Functions-->Taxes--
5 >Plant Abroad-- VOFA WIA
>Maintain Billing type
and billing type
proposal
IMG: Sales and
Distribution-->Basic
Functions-->Taxes--
6 VTFL Std Setup
>Plant Abroad--
>Maintain Copying
control
IMG: Sales and
Distribution-->Basic
Functions-->Taxes--
7 >Plant Abroad-- SPRO Std Setup
>Maintain billing
relevance for Item
Categories

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 10/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

IMG: Sales and

Distribution-->Basic
Functions-->Taxes-- UML need to
8 VKOA
>Plant Abroad-->Assign be maintained
GL account to account
key
IMG: Sales and
Distribution-->Basic
Functions-->Taxes--
VI62
9 >Plant Abroad--
>Maintain Declaration
Numbers

Output Pre-View:

Sample SAP INTRASTAT output related to Plant Abroad scenario

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 11/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

VAT accounting entry for Plant abroad transactions:

Conclusion:

SAP’s solution for Plant abroad meets the VAT and INTRASTAT reporting requirements
for Toll-manufacturing and statutory reporting.

References

http://help.sap.com

Tags:

plant abroad toll manufacturing

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 12/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

5 Comments

MPS4HANA
Active Contributor


‎2018 Sep 13 11:19 AM

 1 Kudo

Thanks.

Can you confirm if any changes in this solution or approach required or remains same
in S/4HANA Enterprise Management On-premise 1709 version ?

Regards

former_member700494
Member


‎2020 Sep 04 1:15 PM

 1 Kudo

@Sarvottam.

Can you please elaborate on the pint preview of the WIA invoice in standard form .

I am also working on one of the case with interstate scenario. From NL to DE

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 13/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

And from NL to GB as well.

Thanks,

Ruby

EllenBone
Discoverer


‎2024 Feb 08 5:04 PM

 0 Kudos

has anyone received a resolution to plants abroad for set up in EU company code that
has warehouses in canada and US. Now rolling out to sales organizations that need
juridictions codes i.e. need to use different tax procedure TAXCAJ and tax engine
Vertex in the US. we have been told this will knock out our European entity FI and
some Sd postings. How can we fix to use tax procedure with jurisdictional codes.
everywhere says it does not work and i can't find a solution

EllenBone
Discoverer


‎2024 Feb 08 5:07 PM

 0 Kudos

https://community.sap.com/t5/financial-management-blogs-by-members/plant-abroad-solution/ba-p/13361788 14/19
3/25/25, 11:04 PM Plant abroad Solution - SAP Community

deactivate plants abroad for a particular

Oss note 850566
company code

plants abroad would need to be deactivated in EU country but this is not possible
either as we have other warehouse

MAHARAJ
Discoverer


‎2024 May 21 6:03 PM

 0 Kudos

Can you pls explain what are impacts on how product costing needs to be executed in
such concept within an option uaing one single system, one CO area assigned to
many CoCd where Principle is having inventory but other agents only for assets or
holding prod as a service. Does the principle needs to build its own BOM /Routings or
can use cross CoCd costing treating one agent as a reff. plant to copy costing from.

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