Handling NRE cost in SAP ECC and SAP GTS

[bhargavt1]

Dear Experts,

I would like to know your opinion on handling of NRE(Non-Recurring Engineering) Charges such as service and tooling in SAP ECC and GTS systems. In current solution our users are entering NRE cost as a short text in PO 2nd line item, Which means PO line item does'nt contain physical material in it and choosing the Material Grp randomly from available list.

While posting the GR using MIGO transaction the GR is getting saved but the GR is not transferring into GTS system for import declaration. This is because the PO line item doesn't contain the valid material ID hence the BADI is restricting the GR transfer to GTS system. As per SAP there is no standard solution available for this.

The requirement is to transfer the non-tangible materials contains in PO/GR to GTS import material document work list so that users will get to know that this PO contains NRE cost to be added in import declarations line item for customs duty purposes.

1. Would need your help to understand how can we transfer such non-tangible materials to GTS worklist

2. Is there a way to capture this NRE cost somewhere in the PO other than as a line item and capture that cost in material document/ import declaration line ITEM 1.

Appreciate your prompt response. Thank you!

Best Regards
Bhargav T

[pecas777]

There is no perfect answer to what you are describing and it sounds like what you need is more of an "assist" so that you get the proper valuation on the PO.

If my NRE is truly an INTANGIBLE good and only a text description, then we use a dummy material that automatically inserts on the MM0A BADI to add a dummy material to GTS. This allows the fake material to exist in GTS, with a proper value, but no error for missing material.

If my NRE is TANGIBLE, we use the proper material group to narrow down what it is being purchased. I transfer the Material Group to GTS and as the MATNR with a prefix and manipulate the BADI to say NRE-XXXXX and the description would match the Material group (e.g., Tooling). The key to making this work for us is the Buyer MUST select the correct Material Group (it cannot be random). A few times a year we run into issues where the Buyer selected the wrong material group, which created issues in GTS that we've had to go back and have the Buyer fix.

Your question is pretty complex because it also depends on what you are doing with the data downstream, how assists are being handled (possible new pricing conditions), how you are declaring the import, do you require tariff checking on the PO, etc. I wish I had an easier answer for you.

Thanks,

Jessica

[mouaz_benredjeb]

Hi Bhargav,

I would say the best way forward for you is to sit with a developer, set a break-point in the BADIs I mentioned earlier, trigger a goods receipt movement that will be replicated to GTS.

From there, when stopping at the break-point, you will be able to see the data being sent to GTS, and identify the price field. In order to make sure you have found the right field, simply change its value in debug mode and see if you do get the desired output in GTS (i.e. new updated price).

As mentioned earlier, it really boils down to whatever logic you will put in the BADI to add the NRE costs (e.g. multiple tangible materials and only 1 NRE cost, how to split the NRE costs across all tangible materials??? After adding the NRE costs, delete the NRE item from the data replicated to GTS, etc...).

This why I am suggesting to sit down with a developer so he/she can familiarise himself/herself with the data and get an understanding of which data has to be “manipulated”.

Hope this helps.

Mouaz BEN REDJEB

[bhargavt1]

Dear Jessica,

Thank you for taking time and providing your feedback.

Yes, this is a bit complex issue, especially for me as a beginner in SAP.

1. I have checked the possibility of inserting the dummy material through the BADI enhancement and transferred to GTS. Here the problem is users does'nt want the NRE as a separate Item in GTS import declaration because HS classification is mandatory for Item in declaration to get message complete and process to customs. Classifying a dummy material and processing to customs is not a valid action as i believe, because it is not an item and actual goods shipping not happening. Please correct me if this can be achieved in some otherway.

2. The Other Problem is if the Item: xx contains the NRE charge deletes from Import declaration Item level, still the line item appears in GTS worklist in case business user just want to use the cost from line item. It could lead to other potential problems.

Dear Mouaz,

Thank you too for the additional information.

Yes, you are correct these costs should be simply added to the price of the product being imported instead of showing up in the GTS declaration as a separate item( For example as a other charges in respective Item of GTS declaration). It would be help full if you could throw some some inputs on the BADI enhancements to add engineering cost to the product price.

Best Regards

Bhargav T

[mouaz_benredjeb]

Further to Jessica's answer, you would need to clarify with your business customs team if the engineering charges should be showing up the GTS declaration as a separate item (so Jessica's approach can be used) or if these costs should be simply added to the price of the product being imported or if the for the product being exported you need to have 2 cost components, one for the product price and one for the engineering costs.

From the sound of your question ("PO contains NRE cost to be added in import declarations line item for customs duty purposes"), I believe that you want is to simply "add" the engineering costs to the product price so you only have 1 total amount for both the product price and engineering costs.

You would still use the BADI suggested by Jessica i.e. /SAPSLL/IFEX_MM0A_R3 (POs) or /SAPSLL/IFEX_MM0C_R3 (GRs)

As you can see, I am afraid there is no standard solution for this and it all boils down to correctly implementing whatever logic you want in the above mentioned BADIs.

Easy peasy... 😛

Hope this helps.

Mouaz BEN REDJEB